26) Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 26,300 chairs:

Department 1	$859,500
Department 2	$286,000

If Martinez sells 23,000 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.)

A. $49.80

B. $32.68

C. $37.37

D. $43.56

27) The balanced scorecard system requires management to consider ________.

A. only financial and customer perspectives

B.only leading indicators

C. both financial and operational performance measures

D. only performance measures

28) Which of the following is a reason companies use standard costs?

A.to identify performance standards

B. to share best practices with other companies

C. to enhance customer loyalty

D. to ensure the accuracy of the financial records

29) Which of the following would not be relevant in an outsourcing decision?

A. Opportunity costs

B. Avoidable variable costs

C. Unavoidable fixed costs

D. Avoidable fixed costs

30) Sayer Tool Co. is considering investing in specialized equipment costing $690,000. The equipment has a useful life of five years and a residual value of $67,000. Depreciation is calculated using the straightline method. The expected net cash inflows from the investment are given below:

Year 1	$205,000
2	153,000
3	162,000
4	100,000
5	150,000
	$770,000

What is the accounting rate of return on the investment? (Round your answer to two decimal places.)

A. 9.44%

B. 3.88%

C. 7.77%

D. 8.52%