Marginal costing and absorption costing are different techniques for assessing profit in a period. If there are changes in inventory during a period, marginal costing and absorption costing give different results for profit obtained. Which of the following statements are true? 1. If inventory levels increase, marginal costing will report the higher profit. 2. If inventory levels decrease, marginal costing will report the lower profit. 3. If inventory levels decrease, marginal costing will report the higher profit. 4. If the opening and closing inventory volumes are the same, marginal costing and absorption costing will give the same profit figure. A All of the above B 1,2 and 4 C 1 and 4 D 3 and 4