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Chemical Engineering :: Chemical Engineering Plant Economics

  1. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

  2. A.

     Overhead cost

    B.

     Fixed expenses

    C.

     General expenses

    D.

     Direct production cost


  3. Pick out the wrong statement.

  4. A.

     Gross margin = net income - net expenditure

    B.

     Net sales realisation (NSR) = Gross sales - selling expenses

    C.

     At break even point, NSR is more than the total production cost

    D.

     Net profit = Gross margin - depreciation - interest


  5. 'Six-tenth factor' rule is used for estimating the

  6. A.

     Equipment installation cost

    B.

     Equipment cost by scaling

    C.

     Cost of piping

    D.

     Utilities cost


  7. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

  8. A.

     Manufacturing cost

    B.

     Depreciation by sinking fund method

    C.

     Discrete compound interest

    D.

     Cash ratio


  9. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

  10. A.

     Overhead cost

    B.

     Working capital

    C.

     Indirect production cost

    D.

     Direct production cost