In an absorption costing income statement, which of the following are true about how inventories affect net operating income?

If inventories increase, fixed manufacturing overhead costs are released from inventories, which in turn decreases net operating income

If inventories decrease, fixed manufacturing overhead costs are deferred in inventories, which in turn increases net operating income

If inventories decrease, fixed manufacturing overhead costs are released from inventories, which in turn decreases net operating income

If inventories increase, fixed manufacturing overhead costs are deferred in inventories, which in turn increases net operating income