Indicate Whether Each of the Following Statements Is True or False

Indicate whether each of the following statements is true or false.
Under variable costing,the cost of inventory includes variable product costs and variable selling and administrative expenses.______
Under absorption costing,the income statement is prepared using a contribution margin approach.______
Variable costing is not allowed for external financial reporting,but many companies find it useful for internal managerial reports.______
Under absorption costing,fixed manufacturing costs are expensed in the period incurred.______
Under variable costing,fluctuations in sales influence net income,but fluctuations in production do not.______