I wanted to ask, there are 2 ways of getting the required profit target (depending on the question) one is to calculate as a percentage of selling price and the other is to calculate as a percentage of the cost.
I am a little confused about how do you determine which method is needed?
Sometimes the question will say "Profit margin is 20%" or "Profit markup is 20%" so I always get confused in figuring out how to calculate the profit
ACCA Forums
PMTarget Costing Question
4y ago#1In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other :-)
Unless the question specifically says differently, then the profit margin is the profit as a % of the selling price, whereas the profit markup is the profit as a % of cost (as was the case in Paper FA (was F3))
Noted.
Thank you so much
4y ago#3You are welcome :-)
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