Materiality Joseph Knapp, a newly hired accountant wanting to impress his boss, stayed late one night to analyze the office supplies expense. He determined the cost by month for the previous 12 months of each of the following: computer paper, copy paper, fax paper, pencils and pens, notepads, postage, stationery, and miscellaneous items.

Required 1. What did Joseph think his boss would learn from this information? What action might be taken as a result of knowing it?

2. Would this information be more relevant if Joseph worked for a hardware store or for a real estate company? Discuss.