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Which of the following refers to the difference between the sale price and cost of inventory?

  • Markup refers to the difference between the sale price and cost of inventory.
  • Markup is the amount of money added to the cost of the product.
  • Markup amount is the difference between the selling price and the purchase cost of an item; also purchase cost times markup percentage.
  • Markup percentage or gross margin A percentage amount added to the purchase cost of merchandise to ensure a profit; markup amount divided by the cost times 100.
  • Markup price Purchase cost plus markup amount; becomes the selling/retail price.