Consider the following statements about variable costing for a manufacturing firm. Which of the following are true?

1. The accounting standards do not permit variable costing to be used for internal reporting (i.e., reports that are circulated only amongst employees who work for a particular organisation)
2. Variable costing treats all variable costs (i.e., variable manufacturing and variable non-manufacturing costs) as inventoriable costs
3. By increasing production of output (while holding the output price, volume sold and total fixed cost constant), a firm that uses variable costing will experience higher profits

Group of answer choices

Statement 1 only

Statement 2 only

Statement 1 and 3 only

Statement 2 and 3 only

None of the statements are true