In the following scenarios, have any accounting principles or assumptions been violated? If yes, which one and how? If no, why?

(a) Fatu Limited buys its merchandise by the lorry and trans-load. Fatu Limited expenses the transportation costs in the period incurred. Such transportation costs although varying from period to period, are always material in amount.

(b) The Kahrabaa Company has purchased a large amount of generators over a number of years. Kahrabaa Company has decided that because the general price level has changed materially over the years, they will issue only price-level adjusted financial statements. (c) The inventory of a retailing enterprise contains a large quantity of an item for which demand has largely disappeared. The manager of the retailing enterprise insists that the item be included in the statement of financial position on the grounds that the item is not subject to deterioration and customers demand for it may revive.