Which Statement Is Not Correct About the Perpetual Inventory System

Multiple Choice

Which statement is not correct about the perpetual inventory system for inventory management?

A) This system keeps track of additions to and withdrawals from inventory.
B) It is not necessary to conduct an inventory count if the perpetual system is used.
C) This method produces timely information for management.
D) With this method, the company knows the inventory on hand and the related cost of goods sold at any point in time.