Which of the following statements regarding inventory accounting is false?

Multiple Choice

Vendor allowances should be used by the buyer to lower the cost of inventory and the cost of goods sold.

A cash purchase discount that is lost due to a late payment should be recorded as interest expense rather than a cost of acquiring inventory.

U$.$S$.$ GAAP requires that inventory costs should include the costs of the purchasing department and other administrative costs incurred with the acquisition and distribution of inventory.

Product costs, i$.$e$.$ raw material, labor and certain overhead items, should be assigned to inventory and treated as assets until the inventory is sold.