1. Consider the following costs and decision-making situations:

   I. The purchase price of new equipment, in a keep vs. disposal decision.

   II. the remodeling cost of existing office space, in a firm's decision to stay at its current location or move to a new building.

   III. The salary of a supervisor who will be laid off, in a department-closure decision.

   Which of the above costs is (are) relevant to the decision situation noted?

   1. I, II and III.

   2. I only.

   3. II and III.

   4. I and II.

   5. II only.

   6. III only