TB MC Qu$.10-87$ Which of the following statements...

Which of the following statements regarding inventory accounting is false?

Multiple Choice

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.

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.

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

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