Which of the following product-costing systems is/are required for external financial statements?

	A.	Direct costing.
	B.	Variable costing.
	C.	Either absorption or variable costing.
	D.	Standard costing
	E.	None of the above.

1. Consider the following statements about standard costing:

   I. When a standard cost system is used, the external financial statements will be prepared using standard costs.

   II. Significant variances are reported on external financial statements.

   III. All variances are closed out to zero at the end of the financial period.

   Which of the above statements is (are) true?

   	A.	I only
   	B.	II only
   	C.	III only
   	D.	All of the above
   	E.	None of the above.