CASH COWS Definition

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CASH COWS are products that produce a large amount of revenue or margin because they have a large share of an existing market which is only expanding slowly.

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PRACTICAL CAPACITY is where the cost of production is based on the practical capacity of production facilities. Therefore, the proportion of overheads allocated to a unit of production is not to be increased as consequence of idle capacity of the plant.

LOADED LABOR RATE is the employee hourly rate plus employee benefits, capital expenses, and other overhead.

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