The materiality concept of accounting allows a business to expense the cost of freight-in rather than add it to the cost of the inventory on the basis that the difference in the accounting treatment would not sway a decision by a financial statement user.

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The materiality concept allows businesses to disregard certain accounting principles if the impact is not significant enough to influence the decision-making of users of financial statements.

The Materiality Concept of Accounting Allows a Business to Expense