Which of the following statements regarding a periodic inventory system is incorrect?

A$.$ The only way to determine the ending merchandise inventory and cost of goods sold in a periodic inventory system is to take a physical inventory.

B$.$ The various inventory costing methods are not used in a periodic inventory system.

C$.$ A periodic inventory system is simpler than a perpetual inventory system.

D$.$ A periodic inventory system works well for small businesses in which inventory costs can be controlled by visual inspection.