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The nurse has been hired for her first job and is nervous about making errors in clinical judgment. It is important for the nurse to realize that clinical reasoning and the ability to make decisions in a clinical setting:
Gross Margin
The financial metric representing the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage. It indicates how efficiently a company is using its resources to produce goods.
Contribution Margin
Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.
Variable Cost
Costs that change in proportion to the level of goods or services that a business produces.
Variable Costing
A pricing approach that incorporates only variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.
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