on the other hand simply refers to the amount of money used to produce or manufacture goods/merchandise as well

as costs incurag in selling the goods/merchandise.

refers to the amount added to the cost to come up with the selling price. The formula for getting the mark up price is as follows:

Is an expense a business incurs through its normal business operations

Salary of office personnel, Utilities, Rent, Tax

Gas and Oil, R&M of vehicles for selling, Salaries and Commission of Salesperson

Amount of merchandise or goods sold by the business for a given period of time.

beginning refers to goods and merchandise at the beginning of operation of business or accounting period.

refer to the merchandise or goods purchased.

refers to amount paid to transport goods or merchandise purchased from the supplier to the buyer. In this case, it is the buyer who shoulders this costs.