A Firm's Accounting Policy Is to Immediately Expense the Cost

A firm's accounting policy is to immediately expense the cost of metal wastebaskets it purchases for use by its employees at their desks. The total cost of wastebaskets in any year is $1,000 and the firm has $6 billion in total assets. The firm expects the wastebaskets to last indefinitely. The firm

A) Is violating GAAP
B) Is invoking the materiality constraint
C) Is invoking the conservatism constraint
D) Is violating the relevance principle
E) None of these answers are correct.