Examlex
The capital market line can be used to determine the expected return on any portfolio based on:
Variable Costing
A method of inventory costing that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.
Absorption Costing
An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.
Net Income
The company's net income following the deduction of all expenditures and taxes from its total revenue.
Variable Selling Costs
Costs that vary directly with the volume of units sold, such as commissions and shipping expenses.
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