Question: What does the cost of a unit of product under absorption costing method consist of?

1. direct materials, direct and indirect labor, and fixed overhead
2. direct materials, indirect labor, and variable and fixed overhead
3. direct materials, direct labor, and both variable and fixed overhead
4. direct materials, direct and indirect labor, and variable overhead

Answer: The correct answer of the above question is Option C:direct materials, direct labor, and both variable and fixed overhead