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Which implements the concept of gatekeeping to contain healthcare costs?
Cost Variance
The difference between actual cost and the flexible budget at actual volumes.
Actual Cost
The incurred expenditure on materials, labor, and overhead necessary to produce a product or perform a service, reflecting the genuine expense.
Standard Cost
A pre-determined cost of manufacturing a product or delivering a service, calculated to help manage budgets and performance evaluations.
Unfavorable Variance
A situation where actual costs exceed budgeted or expected costs, often indicating a need for operational adjustments.
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