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The nursing instructor is speaking to a group of nursing students about standards of care.Which comment made by the nursing student indicates the need for further education about the standards of care?
Contribution Margin Ratio
The percentage of revenue remaining after deducting variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.
Variable Costs
Expenses that fluctuate with the level of production output, such as raw materials and direct labor.
Fixed Costs
Expenses that remain constant in total amount irrespective of fluctuations in the activity level of a business, e.g., insurance premiums.
Composite Unit
A grouping of assets or costs that are combined and treated as a single unit for accounting or valuation purposes.
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