In principle, wasting assets should be capitalized and depreciated. However, the effect on the financial statements of expensing rather than capitalizing and depreciating the staplers is clearly not material given that they cost US $1,000 and the enterprise has total assets of US $1,000. The choice of treatment is not likely to influence the decisions of financial statement users. The balance between benefit and cost is a pervasive constraint, not a qualitative characteristic. The benefits should exceed the cost of information.
Specifically, the cost of producing the information about depreciation expense over 10 years for the staplers probably is higher than the benefits of the information for decision making. Thus, the expedient procedure of expensing the US $1,000 should be followed.

A client-server network can cope with thousands of clients at a time. They can access the server over the Internet from any where at any time with no time-related charges.

Cost of goods sold equals beginning inventory, plus purchases including freight-in minus ending inventory. Given that sales reflect 125% of cost, cost of goods sold must equal US $720,000$900.000 sales Consequently the beginning inventory must been US $85,000$720,000 CGS $80,000 E- $690,000 purchases - $25,000 freight-in)

Automating and computerizing production processes requires a substantial investment in fined assets and an increase in risk because of greater fixed costs. CI also necessitates an increase in software costs and extensive worker retraining. However, the costs of spoilage, rework, and scrap are reduced along with labor costs. The qualitative advantages of I are increased flexibility, shorter manufacturing lead time, quicker development of new products, better product delivery and service, faster response to market changes, and improved competitiveness.