The difference between the retail or wholesale price and the cost of an item is called?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Get ready for the DECA Hospitality and Tourism Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Prepare for your assessment!

Multiple Choice

The difference between the retail or wholesale price and the cost of an item is called?

Explanation:
The main idea here is how much you add to the item’s cost to set the selling price. That added amount is called markup. Markup equals the selling price minus the cost, and it shows how much profit or overhead is built into the price. For example, if an item costs 50 and you price it at 70, the markup is 20, which is 40% of the cost. This is different from margin, which expresses profit as a percentage of the selling price. The other terms relate to promotion or planning (marketing, marketing mix, meal plan) rather than the price calculation itself.

The main idea here is how much you add to the item’s cost to set the selling price. That added amount is called markup. Markup equals the selling price minus the cost, and it shows how much profit or overhead is built into the price. For example, if an item costs 50 and you price it at 70, the markup is 20, which is 40% of the cost. This is different from margin, which expresses profit as a percentage of the selling price. The other terms relate to promotion or planning (marketing, marketing mix, meal plan) rather than the price calculation itself.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy