Which of the following statements about the perpetual inventory system is not correct?

A$.$ Cost of goods sold is determined either continuously throughout the period as goods are sold, or at the end of the period, at the discretion of management.

B$.$ The basic relationship of beginning inventory added to goods purchased, reduced by ending inventory, underlies the determination of cost of goods sold.

C$.$ Inventory becomes an expense as those items are sold.

D$.$ Cost of goods sold is determined continuously during the period as goods are sold.