Consider the following statements about absorption costing and variable costing. Which statement or combination of statements is the most accurate?

Multiple Choice

$$ Variable costing is consistent with contribution reporting and cost$-$volume$-$profit analysis

Absorption costing must be used for external financial reporting

A number of companic le both absorption costing and variable costing

$$ Variable costing is consistent with contribution reporting and cost$-$volume$-$profit analysis, and absorption costing must be used for external financial reporting

Variable costing is consistent with contribution reporting and cost$-$volume$-$profit analysis, absorption costing must be used for external financial reporting, and a number of companies use both absorption costing and variable costing