chemical engineering plant economics Mcqs
51. In an ordinary chemical plant, electrical installation cost may be about ____________________?
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A. 10-15% of purchased equipment cost

B. Neither A. nor B.

C. Either A. or B.

D. 3-10% of fixed capital investment

52. Scheduling provides information about the_________________?
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A. Time of starting of job and also about how much work should be completed during a

B. Proper utilisation of machines

C. Time of completion of job

D. Means to minimise idle time for machines

E. ticular period</strong>

53. In which of the electric power generation system, the operating cost is minimum ?
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A. Thermal

B. Hydroelectric

C. Fast breeder reactor

D. Nuclear

55. Which of the following ceramic packing materials is the costliest of all ?
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A. Berl saddles

B. Raschig rings

C. Intalox saddles

D. Pall rings

57. Out of the following, the depreciation calculated by the _____________ method is the maximum?
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A. Diminishing balance

B. Sinking fund

C. Sum of the years digit

D. Straight line

58. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant ?
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A. Rate of return on investment

B. Payout period

C. Discounted cash flow based on full life performance

D. Cash reserve
59. Operating profit of a chemical plant is equal to___________________?
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A. Profit after tax

B. Net profit + tax

C. Profit before interest and tax i.e., net profit + interest + tax

D. Profit after tax plus depreciation

61. Pick out the wrong statement?
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A. Net profit = Gross margin depreciation interest

B. Net sales realisation (NSR) = Gross sales selling expenses

C. Gross margin = net income net expenditure

D. At breakeven point, NSR is more than the total production cost
66. Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?
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A. Sum of the years digit

B. Declining balance

C. Straight line

D. None of these

67. Which of the following elements is not included in the scope of market analysis ?
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A. Competition from other manufactures

B. Product distribution

C. Economics

D. Opportunities

68. In financial accounting of a chemical plant, which of the following relationship is invalid ?
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A. Total income = costs + profits

B. Assets = capital

C. Assets = liabilities + net worth

D. Assets = equities

69. Optimum economic pipe diameter for fluid is determined by the___________________?
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A. Total cost considerations (pumping cost plus fixed cost of the pipe)

B. Viscosity of the fluid

C. Density of the fluid

D. None of these

70. Fixed charges for a chemical plant does not include the____________________?
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A. Repair and maintenance charges

B. Property tax, insurance and depreciation

C. Rent of land and buildings

D. Interest on borrowed money

75. ____________ taxes are based on gross earnings ?
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A. Excise

B. Income

C. Capital gain

D. Property

76. Direct costs component of the fixed capital consists of _____________________?
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A. Contingencies

B. Onsite and offsite costs

C. Raw material costs

D. Labour costs

77. Total product cost of a chemical plant does not include the ______________ cost?
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A. Overhead and utilities

B. Operating labour, supervision and supplies

C. Depreciation, property tax and insurance

D. Market survey
81. Gross earning is equal to the total income minus___________________?
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A. Income tax

B. Total product cost

C. Fixed cost

D. None of these

82. Which of the following is not a component of depreciation cost ?
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A. Loss due to obsolescence of the equipment

B. Loss due to accident/breakdown in the machinery

C. Repairs and maintenance cost

D. Loss due to decrease in the demand of product

83. In declining balance method of depreciation calculation, the _____________________?
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A. Annual depreciation is the fixed percentage of the property value at the beginning of the

B. None of these

C. Value of the asset decreases linearly with time

D. ticular year</strong>

E. Annual cost of depreciation is same every year

85. Pick out the wrong statement?
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A. Working capital turnover ratio = sales/net working capital

B. Total cost of production is more than net sales realisation (NSR) at breakeven point

C. Return on equity = profit after tax/net worth

D. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)

87. In a manufacturing industry, breakeven point occurs, when the___________________?
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A. Annual profit equals the expected value

B. Total annual rate of production equals the assigned value

C. Total annual product cost equals the total annual sales

D. Annual sales equals the fixed cost

91. Factory manufacturing cost is the sum of the direct production cost_________________?
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A. And plant overhead cost

B. Fixed charges and plant overhead cost

C. None of these

D. Plant overhead cost and administrative expenses

92. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
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A. Sum of the years digit method

B. Multiple straight line method

C. Declining balance method

D. Sinking fund method