A periodic system of inventory

A) reduces record keeping.
B) increases record keeping.
C) increases the cost of maintaining inventory.
D) eliminates the need for a physical count.

A periodic system of inventory only requires a physical count of inventory at specific intervals, rather than continuous tracking of inventory levels. This reduces the amount of record keeping required compared to a perpetual inventory system, which requires more frequent tracking and updating of inventory levels. Therefore, the correct answer is A - a periodic system of inventory reduces record keeping.