Consider the following statements about absorption costing and variable costing: (I) Variable costing is consistent with contribution reporting and...

Consider the following statements about absorption costing and variable costing:

(I) Variable costing is consistent with contribution 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.

Which of the above statements is (are) false?