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The competence-performance gap is likely to be larger when
Costs
Expenses incurred in the process of creating, manufacturing, or providing a service or product, including fixed, variable, and semi-variable costs.
Controllable Margin
Contribution margin less controllable fixed costs.
Controllable Fixed Costs
Fixed costs that management has the ability to influence or change in the short term.
Profit Center
A responsibility center that incurs costs and also generates revenues.
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