Indicate whether each of the following statements is true or false.

In a period when finished goods decreases, use of absorption costing results in higher net income than variable costing.
Direct materials and direct labor usually behave as variable costs.
Generally accepted accounting principles allow a company to use either variable or absorption costing for external financial reporting.
Under absorption costing, fixed manufacturing costs are expensed in the period incurred.
Increasing the number of units produced during a period increases net income under absorption costing because the cost of goods sold decreases.