B. Although materiality in terms of size is important, size alone does not qualify a loss as an extraordinary item. To qualify as extraordinary, an event should be unusual in nature, and not be expected to recur in the foreseeable future.

true

Explanation:

In simple words, the above statement relates to the theories of cost accounting. An extraordinary item can be understood as an accounting concept that relates to an exceptional benefit or loss which is not caused, unusual in existence, and uncertain to reappear in the near future from the usual business activities of a firm. The financial reports individually report extraordinary items.

Thus, from the above we can conclude that the correct option is true.