Many Parents Begin Their Children in Sports Activities During Preschool

question 42

Essay

Many parents begin their children in sports activities during preschool, including playing actual games. Explain to a frustrated parent why his child may not be involved successfully in a competitive game at this age.

---

Definitions:

Fixed Overhead

Costs that do not change with the level of production activity, such as rent, salaries, and insurance.

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from non-operational activities like investment income.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the direct costs associated with producing them.