Consider the following statements about absorption costing and variable costing:

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

II$.$ Variable costing must be used for external financial reporting.

III. A number of companies use both absorption costing and variable costing in published financial statements.

Which of the above statements is $($are$)$ true?

Multiple Choice

I only.

II only.

III only.

I and II$.$

I and III.