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Question 1: 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.)
Option 1: Because contracted salary costs have not yet been incurred, they are not actually sunk costs.
Option 2: Ryan can deem contracted salary costs as irrelevant for most operational decisions.
Option 3: Because contracted salary costs are labor-oriented, they will always be relevant to operational decisions.
Option 4: Ryan can classify costs as sunk cost, regardless of whether there is a contract
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