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 should not be expected to hit the ground running. To the contrary, the foal should be permitted to lie, rest and be nuzzled by the mare for at least 30 minutes after foaling. Under normal conditions, a newborn foal attempts to stand under its own power within 45 minutes following birth.