Evaluate the following statements: 1. Absorption costing is required by the Generally Accepted Accounting Principles (GAAP) for financial statements issued to investors, creditors, and other external users. 2. The fixed factory overhead is considered a product cost in variable costing and a period cost in absorption costing. 3. Variable costing is used for internal reporting purposes. O Only Statement #1 is true O Both Statement #2 and #3 are true All of the Statements are true O Only Statement #2 is true o Only Statement #3 is true O Both Statement #1 and #2 are true O Both Statement #1 and 83 are true