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Question 1: 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?
Option a. The administrative costs are allocated costs.
Option b. Administrative costs are always relevant.
Option c. Administrative costs are always irrelevant.
Option d. The allocated administrative costs are irrelevant to Shelby's decision to drop the product line.
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