Final answer:
The three cost elements ordinarily included in product costs are direct materials, direct labor, and manufacturing overhead.
Step-by-step explanation:
The statement is True. The three cost elements ordinarily included in product costs are direct materials, direct labor, and manufacturing overhead.
Direct materials refer to the raw materials that are directly used in the production process, such as wood for furniture manufacturing or flour for baking. Direct labor includes the wages or salaries paid to the workers who directly contribute to the production of goods or services.
Manufacturing overhead consists of indirect costs, such as rent, utilities, and depreciation of equipment, that are necessary for the production process but cannot be directly traced to a specific product.
These three cost elements are considered essential in calculating the total cost of producing a product and determining its profitability.