Question

Between cost price and market price, which should be used in final account?

Answer 1

1. The money paid by the shopkeeper to the manufacturer or whole seller to buy goods is called the cost price of the goods purchased by the shopkeeper.
2. To avoid loss due to bargaining by the customer and to get profit over the cost price, the trader increase the cost price This increase is know as markup and the increased price is called the marked price or printed price or list price of the goods.