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Chemical Engineering :: Chemical Engineering Plant Economics

  1. Generally, income taxes are based on the

  2. A.
    total income
    B.
    gross earning
    C.
    total product cost
    D.
    fixed cost

  3. A balance sheet for an industrial concern shows

  4. A.
    the financial condition at any given time.
    B.
    only current assets.
    C.
    only fixed assets.
    D.
    only current and fixed assets.

  5. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
    The present cost of the plant = original cost   x
    The most major component of this cost index is

  6. A.
    fabricated equipment and machinery.
    B.
    process instruments and control.
    C.
    pumps and compressor.
    D.
    electrical equipments and material.

  7. Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

  8. A.
    10 to 20
    B.
    20 to 40
    C.
    45 to 60
    D.
    65 to 75

  9. In a chemical process plant, the total product cost comprises of manufacturing cost and the

  10. A.
    general expenses
    B.
    overhead cost
    C.
    R & D cost
    D.
    none of these

  11. Which of the following is not a component of the fixed capital for a chemical plant facility?

  12. A.
    Raw materials inventory.
    B.
    Utilities plants.
    C.
    Process equipment.
    D.
    Emergency facilities.

  13. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

  14. A.
    B.
    1000 (1 + 0.1)20
    C.
    D.

  15. Functional depreciation of an equipment is the measure of decrease in its value due to its

  16. A.
    ageing
    B.
    wear and tear
    C.
    obsolescence
    D.
    breakdown or accident

  17. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

  18. A.
    cash reserve
    B.
    capital
    C.
    turnover
    D.
    investment

  19. Effective and nominal interest rates are equal, when the interest is compounded

  20. A.
    annually
    B.
    fortnightly
    C.
    monthly
    D.
    half-yearly