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.


B) To be competitive, small retailers must use a perpetual inventory system.

Business

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