Mark On, Mark Up, Mark Down

Question 1

It is a temporary mark-up on certain products to take advantage of the high demand during peak sales.

Answer 1

Mark-on

Question 2

It is an amount added to the cost of merchandise to obtain a higher amount known as its selling price.

Answer 2

Markup

Question 3

It is a reduction in the selling price of merchandise. It is the difference between the original selling price and the reduced price.

Answer 3

Mark-down

Question 4

The purpose of a markdown is to improve sales.

Answer 4

False

Question 5

It is the price at which the item is actually sold. This is computed as the cost for the business to manufacture or purchase the item plus the markup.

Answer 5

Selling price

Question 6

The basis of markdown is the current price.

Answer 6

True

Question 7

Markdown can be expressed in percent.

Answer 7

True

Question 8

The selling price is the price at which the item is sold.

Answer 8

True

Question 9

A manufacturer sells their product at Php350 per piece. Their
total expenses, which includes the cost of goods sold and
operating expenses are Php300. The net profit is Php50.

Answer 9

True

Question 10

Markup is based on cost.

Answer 10

True