Used when comparing one person or thing with another to highlight the superiority in quality or ability. His attention to detail is a cut above his peers.
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Positive Expression
It is always used to express a positive opinion about something being better, not worse. Your homemade cakes are a cut above store-bought ones!
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Non-Literal Phrase
It's an idiomatic expression, meaning it shouldn’t be taken literally – no actual cutting involved. This hotel is a cut above the one we stayed at last year.