CIPS L3M3 Exam - Topic 1 Question 51 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 51
Topic #: 1

Imagine you discuss profit on an item for sale in your business as a percentage of the selling price. Assume the profit element represents 50% of the selling price. Is mark-up or margin being described here?

AMark-up

BMargin

Show Suggested Answer

Suggested Answer: B

When profitability is spoken of as a % the selling price, the profit element is called the margin.

by Katie at Jun 22, 2026, 06:36 PM

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Derrick

12 hours ago

This sounds similar to a practice question we did last week. I believe it's margin because it’s 50% of the selling price, not the cost.

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Vashti

6 days ago

I'm not entirely sure, but I remember mark-up is usually based on cost, while margin is based on selling price.

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Luis

11 days ago

I think this is about margin since it talks about profit as a percentage of the selling price, right?

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