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Chemical Engineering :: Chemical Engineering Plant Economics

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

  2. 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


  3. Which of the following is not a current asset of a chemical company?

  4. A.

     Inventories

    B.

     Marketable securities

    C.

     Chemical equipments

    D.

     None of these


  5. In declining balance method of depreciation calculation, the

  6. 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


  7. Generally, income taxes are based on the

  8. A.

     Total income

    B.

     Gross earning

    C.

     Total product cost

    D.

     Fixed cost


  9. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

  10. A.

     Perpetuity

    B.

     Capital charge factor

    C.

     Annuity

    D.

     Future worth


  11. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

  12. A.

     Decreases

    B.

     Increases

    C.

     Increases linearly

    D.

     Remains constant


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

  14. 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


  15. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

  16. A.

     Cash reserve

    B.

     Rate of return on investment

    C.

     Payout period

    D.

     Discounted cash flow based on full life performance


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

  18. A.

     General expenses

    B.

     Overhead cost

    C.

     R & D cost

    D.

     None of these


  19. Factory manufacturing cost is the sum of the direct production cost

  20. A.

     Fixed charges and plant overhead cost

    B.

     And plant overhead cost

    C.

     Plant overhead cost and administrative expenses

    D.

     None of these