Murabaḥah is a term for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold, which covers the cost of what?
Markup (business) Markup is the ratio between the cost of a good or service and its selling price. It is expressed as a percentage over the cost. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product. Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price. Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used.
Shariah Board A Sharia Board (also Shariah Supervisory Board, Advisory Board or Religious Board) certifies Islamic financial products as being Sharia-compliant (i.e. in accordance with Islamic law). Because compliance with shariah law is the underlying reason for the existence of Islamic finance, Islamic banks (and conventional banking institutions that offer Islamic banking products and services) should establish a Shariah Supervisory Board (SSB) to advise them on whether their products comply, and to ensure that their operations and activities comply with Shariah principles. There are also national sharia boards in many Muslim majority countries that regulate Islamic financial institutions nationwide.