Profit margin and markup are accounting terms that use the same inputs and analyze the same transaction. They show different information, however. Both profit margin and markup use revenue and ...

The markup acts as an internal indicator that the company sells its product or service at a higher price than it cost. A company's gross margin indicates that it has generated more money from ...

Confusion frequently surrounds the meaning of gross margin and markup, probably because they are two different ways of expressing the same thing. Both measure the difference between the price that ...

Markup can affect profit margin. If you buy an item for $1 and sell it for $2 you will earn more than if you sell it for $1.50. However, sometimes using too high a markup can actually go against ...