JAMB Accounts Principles of Accounts 2023 Paper

Concept:Mark-up expresses profit as a percentage of the cost price, which is the same as the cost of goods sold.Explanation:Profit can be related to either selling price or cost price.When profit is expressed as a percentage of the cost of goods sold, it is called mark-up.Margin, on the other hand, expresses profit as a percentage of the selling price.Turnover and cost price are not terms used for this profit relationship.Mathematically, mark-up is given by:$$\text{Mark-up} = \frac{\text{Profit}}{\text{Cost of Goods Sold}} \times 100\%$$Therefore, the correct term for profit in relation to cost of goods sold is mark-up.Answer:D. mark-up