If the fixed cost is increased by $20,000, what is the difference between the total manufacturing cost and total purchased cost?

In which of the following circumstances is an auditor most likely to rely on work done by internal auditors?

a. If financial statement amounts are material and the degree of subjectivity in evaluating the audit evidence is high b. If the internal auditors have concluded that the risk of material misstatement at the overall financial level is negligible c. For financial statement amounts judged by the auditor to require little or no subjectively evaluated audit evidence d. For financial statement amounts determined largely or entirely on the basis of estimates made by management

Suppose that a small, rural city in the countryside of North Dakota plans to issue $150,000 worth of 10-year bonds. Which one of the following components of the bond's yield will be affected by the fact that no active secondary market is expected for these bonds?

A. Real rate B. Liquidity premium C. Interest rate risk premium D. Inflation premium E. Taxability premium