Question 1

What is markup defined as?

Accepted Answer

the amount added to the cost of a product to determine the selling price

Answer

the percentage of profit earned

Answer

the cost of production

Answer

the total revenue generated from sales

Question 2

How is the markup rate based on cost calculated?

Accepted Answer

markup divided by cost

Answer

markup divided by selling price

Answer

selling price divided by cost

Answer

cost divided by markup

Question 3

If a product costs ₱200 and sells for ₱400, what is the markup amount?

Accepted Answer

₱200

Answer

₱400

Answer

₱600

Answer

₱100

Question 4

What is margin defined as?

Accepted Answer

the amount when selling price is deducted by the product cost

Answer

the profit before expenses

Answer

the revenue after taxes

Answer

the total sales generated

Question 5

What does a higher gross margin indicate about a company's finance?

Accepted Answer

the company retains more capital

Answer

the company has lower expenses

Answer

the company has higher sales volume

Answer

the company is selling more products

Question 6

How is a trade discount generally applied?

Accepted Answer

as a percentage off the original price

Answer

as a flat fee deducted after purchase

Answer

as a tax on selling price

Answer

as a fee charged for membership

Question 7

How do you find the net invoice price after a single trade discount?

Accepted Answer

original price minus trade discount

Answer

selling price divided by discount rate

Answer

selling price minus cost

Answer

original price plus trade discount

Question 8

In a discount series of 20%, 10%, and 5%, what is the first step to find the net price?

Accepted Answer

apply the first discount to the original price

Answer

divide the original price by total discount percentage

Answer

subtract the total discount percentage from 100%

Answer

sum up all discounts

Question 9

What is the formula for calculating net invoice price using a discount rate?

Accepted Answer

NIP = OP × (1 - DR)

Answer

NIP = DR - OP

Answer

NIP = OP / DR

Answer

NIP = OP + DR

Question 10

What is the margin based on selling price when the markup is ₱34.25 and selling price is ₱55.00?

Accepted Answer

62.27%

Answer

45%

Answer

20%

Answer

33.86%

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