Early Intervention Programs Are Expensive, Ranging from $6,000 to $18,000

question 140

Multiple Choice

Early intervention programs are expensive, ranging from $6,000 to $18,000 annually per child. Why are these programs considered a "wise investment"?

• A) Children who attend these programs score 15 to 30 points higher in IQ than their peers.
• B) Preschoolers who attend these programs show significantly greater achievement in all academic areas when compared to national averages.
• C) Most researchers actually disagree with the investment, arguing that the cost is too high.
• D) The investment leads to decreased need for special education and other social services later on.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead.

Direct Labor

Direct labor comprises the labor costs of workers directly involved in the production of goods or services.

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 unit of product.

Fixed Manufacturing Overhead

Ongoing expenses that do not change in total with the level of production or sales volume, such as salaries, rent, and insurance, associated specifically with the manufacturing process.