Which one of the following statements about the use of a continuous inventory system is INCORRECT?

A. In a retail organisation, a continuous inventory system can be used to keep track of the quantity of each stock item available in its distribution centres.

B. Under continuous inventory, the cost of each receipt of inventory and the cost of each issue from inventory is recorded individually.

C. A continuous inventory system removes the need for periodic physical inventory counts.

D Both the FIFO and average cost (AVCO) methods of pricing inventory may be used within a continuous inventory system.