Answer: direct material, direct labor, and fixed manufacturing overhead
Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.
Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.
under this method, all variable cost as well as fixed cost are all included in the cost of a product.
Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.
