Regarding the Inventory System Used by Small Retailers,which of the Following

Multiple Choice

Regarding the inventory system used by small retailers,which of the following statements is incorrect?

A) Some small retailers find it too expensive to invest in a perpetual inventory system.
B) To be competitive, small retailers must use a perpetual inventory system.
C) In a periodic inventory system, businesses must obtain a physical count of inventory to determine quantities on hand.
D) Small retailers can use either the periodic or perpetual inventory system.