Consider the following statements about absorption and variable costing for a manufacturing firm. Which of the following is/are likely to be true? 1. By increasing production of output without considering the actual demand for its products (while holding the output price, volume sold, variable cost per unit and total fixed cost constant), a firm that uses absorption costing will experience lower profits. 2. Absorption costing involves including all manufacturing and non-manufacturing costs incurred by the firm in the value of its inventory. 3. Variable costing involves including all manufacturing variable costs and non-manufacturing variable costs incurred by the firm in the value of its inventory