Which of the following statements about variable costing is not correct? With variable costing, changes in inventory do not impact profitability. Profits move in the same direction as sales when fixed costs are not apportioned. A variable costing statement provides explicit information on variable and fixed costs. It is easier for managers to see the impact of the full fixed costs in any period. Managers are able to see the profitability of products better with variable costing, because product costs are not diluted by apportionment of fixed costs to products. Variable costing is better able to match costs with revenues according to the accruals/matching principle. This is preferred for external financial reporting