A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2020 · Q181 Mark

A business applied a mark-up of 25%. Which statement is correct?

AGross margin is 20%.

BGross margin is 25%.

CProfit margin is 20%.

DProfit margin is 25%.

✓ Correct answer

A: Gross margin is 20%.

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 18.

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