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Chemical Engineering Plant Economics - Section 1
Chemical Engineering Plant Economics - Section 2
Chemical Engineering Plant Economics - Section-3

  1. Which of the following is not a component of working capital ?

    2. A.
    Raw materials is stock.
    B.
    Finished products in stock.
    C.
    Transportation facilities.
    D.
    Semi-finished products in the process.

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  2. In declining balance method of depreciation calculation, the

    3. A.
    value of the asset decreases linearly with time.
    B.
    annual cost of depreciation is same every year.
    C.
    annual depreciation is the fixed percentage of the property value at the beginning of the particular year.
    D.
    none of these.

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  3. Which of the following relationship is not correct is case of a chemical process plant ?

    4. A.
    Manufacturing cost = direct product cost + fixed charges + plant overhead costs
    B.
    General expenses = administrative expenses + distribution & marketing expenses
    C.
    Total product cost = manufacturing cost + general expenses
    D.
    Total product cost = direct production cost + plant overhead cost.

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  4. For a given fluid, as the pipe diameter increases, the pumping cost

    5. A.
    decreases.
    B.
    increases.
    C.
    remains the same.
    D.
    may increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian.

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  5. In which of the electric power generation system, the operating cost is minimum ?

    6. A.
    Thermal
    B.
    Nuclear
    C.
    Hydroelectric
    D.
    Fast breeder reactor

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  6. Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.

    7. A.
    15000
    B.
    16105
    C.
    18105
    D.
    12500

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  7. Operating profit of a chemical plant is equal to

    8. A.
    profit before interest and tax i.e., net profit + interest + tax
    B.
    profit after tax plus depreciation
    C.
    net profit + tax
    D.
    profit after tax

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  8. In a manufacturing industry, break even point occurs, when the

    9. A.
    total annual rate of production equals the assigned value.
    B.
    total annual product cost equals the total annual sales.
    C.
    annual profit equals the expected value.
    D.
    annual sales equals the fixed cost.

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  9. Gross earning is equal to the total income minus

    10. A.
    total product cost
    B.
    fixed cost
    C.
    income tax
    D.
    none of these

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  10. The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

    11. A.
    initial cost.
    B.
    book value at the end of (n - 1)th year,
    C.
    depreciation during the (n - 1)th year.
    D.
    difference between initial cost and salvage value.

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