margin vs markup As every coin has two sides, likewise, margin and markup are two accounting terms which refers to the two ways of looking at business profit. When the profit is addressed as the percentage of sales, it is called profit margin. Conversely, when profit is addressed as a percentage of cost, it is called as markup.

While markup is nothing but an amount by which the cost of the product is increased by the seller to cover the expenses and profit and arrive at its selling price. On the other hand, the margin is simply the percentage of selling price i.e. profit. It is the difference between the selling price and cost price of the product.

The terms margin and markup are very commonly juxtaposed by many accounting students, however, they are not one and the same thing.

Content: Markup Vs Margin

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The margin should be set at 1 inch for the essay. Another good sentence would be, she won the race by a margin.

Margin superiority is a concept of comparative advantage. It means less opportunity cost of producing one unit of good compared to another good.

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