You must understand fixed overhead expenses in order to understand absorption costing and variable costing. Fixed overhead consists of expenses that do not change with your level of production. Examples of fixed overhead include rent, insurance, wages for permanent full-time employees, and lease payments on equipment.
Whereas it may be safe to start a horse as early as two years of age, you must reasonably moderate the demands you are about to place on the developing horse. One hour of riding work may be just fine for a fully developed horse, but it is most often unacceptable for a two-year old.
Foals are born after 11 months gestation (time in the mareâs womb). Thoroughbred breeders work on an average gestation length of 340 days to work out their âdue datesâ. Some mares foal earlier and some later. Foals are not usually viable if born before 250-300 days.