In a decision to replace or retain equipment, the difference between the original purchase price and the accumulated depreciation of the old equipment is a. Greater than $0 b. An opportunity cost c. A sunk cost d. Relevant Ryan is a manager in a bank. He is using cost information to make a number of operational decisions. Some of these costs are salaries for other employees, who have formal one-year employment contracts. Which of the following statements are true regarding these costs? (Check all that apply.) o Ryan can deem contracted salary costs as relevant for most decisions. o Ryan can classify contracted salary costs as sunk. o Ryan can deem contracted salary costs as irrelevant for most operational decisions. o Ryan must consider contracted salary costs in most operational decisions. Shelby is considering whether to drop a product line from her business. Some administrative costs are being allocated to the product line but will not change in total if Shelby decides to drop the product line. Which of the following statements are true regarding these costs? (Check all that apply.) o The allocated administrative costs are irrelevant because they are not direct costs. o Shelby will drop the product line from her business because of administrative cost savings. o Administrative costs are always irrelevant. o The allocated administrative costs may look like cost savings resulting from dropping the product line but are actually irrelevant.