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This might sound like a stupid question, but I always get muddled with these – can anyone give a simple explanation differentiating between the two and/or their relevant calculations? Thanks!!
Margin is profit as a % of selling price.
Mark-up is profit as a % of cost.For examples watch the free paper F3 lectures on mark-ups and margins.
In Paper F5 there are only relevant as parts of other questions – not as questions all by themselves (such as, for example, as part of a target costing question). My free lectures for Paper F5 contain many examples using mark-ups or margins in different topics – they are a complete course for Paper F5 and cover everything needed to be able to pass the exam well.
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