Criticize this statement ? (In Managerial accounting)

the cellphone company that I have worked for before I joined the military. This cellphone company could use a variable costing system. This means that only direct materials, direct labor, and variable manufacturing overhead are included as product costs. As a result, the following items would be included in the product costs:

Direct materials like glass, plastic, and metal

Direct laborers pay

Variable manufacturing overhead such as utilities, manufacturing supplies, material handling, etc.

On the other hand, the cellphone company could also use the absorption costing method. In this case, the following items would be included in the product costs:

Direct materials like glass, plastic, and metal

Direct laborers pay

Fixed manufacturing overhead such as rent, depreciation, insurance, etc.

Variable manufacturing overhead such as utilities, manufacturing supplies, material handling, etc.