Which of the following statements about recording shrinkage losses is not correct?

Shrinkage losses are always included in Cost of Goods Sold.

If shrinkage losses are material in amount, they should be recorded with a debit to a special loss account, such as Inventory Shrinkage Losses.

If shrinkage losses are relatively small, the costs removed from inventory may be added directly to the Cost of Goods Sold account.

Shrinkage losses are deducted from revenue in the same manner as an expense account.