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Chemical engineering plant economics
1-Dont try to cram or spend more time here just read it fast and cover syllabus then practice MCQ's cheptor of same topic to check your progress. . |
2-Wrong options are also given but dont concentrate there, Right answer is in bold format. |
Q41 ⇒ Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A. 35 [other wrong options] [Discuss in forum] 15 55 75 |
Q42 ⇒ Factory manufacturing cost is the sum of the direct production cost fixed charges and plant overhead cost. [other wrong options] [Discuss in forum] and plant overhead cost. plant overhead cost and administrative expenses. none of these. |
Q43 ⇒ Optimum economic pipe diameter for fluid is determined by the total cost considerations (pumping cost plus fixed cost of the pipe). [other wrong options] [Discuss in forum] viscosity of the fluid. density of the fluid. none of these. |
Q44 ⇒ An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the pay back time ? 7 years [other wrong options] [Discuss in forum] 5 years 12 years 10 years |
Q45 ⇒ Which of the following is not a component of the fixed capital for a chemical plant facility? Raw materials inventory. [other wrong options] [Discuss in forum] Utilities plants. Process equipment. Emergency facilities. |
Q46 ⇒ The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is 0.015 [other wrong options] [Discuss in forum] 0.15 0.1 1.5 |
Q47 ⇒ In declining balance method of depreciation calculation, the annual depreciation is the fixed percentage of the property value at the beginning of the particular year. [other wrong options] [Discuss in forum] value of the asset decreases linearly with time. annual cost of depreciation is same every year. none of these. |
Q48 ⇒ Scheduling provides information about the time of starting of job and also about how much work should be completed during a particular period. [other wrong options] [Discuss in forum] proper utilisation of machines. means to minimise idle time for machines. time of completion of job. |
Q49 ⇒ Pick out the wrong statement. Total cost of production is more than net sales realisation (NSR) at break even point. [other wrong options] [Discuss in forum] Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity). Return on equity = profit after tax/net worth. Working capital turn over ratio = sales/net working capital. |
Q50 ⇒ Pick out the wrong statement. Net revenue is the total profit remaining after deducting all costs excluding taxes. [other wrong options] [Discuss in forum] Gross revenue is that total amount of capital received as a result of the sale of goods or service. The ratio of immediately available cash to the total current liabilities is known as the cash ratio. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval. |
Q51 ⇒ Which of the following is not a component of depreciation cost ? Repairs and maintenance cost. [other wrong options] [Discuss in forum] Loss due to obsolescence of the equipment. Loss due to decrease in the demand of product. Loss due to accident/breakdown in the machinery. |
Q52 ⇒ Gantt chart (or Bar chart) is helpful in preparing production schedule. [other wrong options] [Discuss in forum] efficient utilisation of manpower and machines. efficient despatching of products. inventory control. |
Q53 ⇒ 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 depreciation by sinking fund method. [other wrong options] [Discuss in forum] manufacturing cost. discrete compound interest. cash ratio. |
Q54 ⇒ A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs. 121 [other wrong options] [Discuss in forum] 110 97 91 |
Q55 ⇒ The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities. net working capital [other wrong options] [Discuss in forum] cash ratio current ratio liquids assets |
Q56 ⇒ Out of the following, the depreciation calculated by the __________ method is the maximum. diminishing balance [other wrong options] [Discuss in forum] straight line sum of the years digit sinking fund |
Q57 ⇒ Generally, income taxes are based on the gross earning [other wrong options] [Discuss in forum] total income total product cost fixed cost |
Q58 ⇒ Which of the following is not a component of working capital ? Transportation facilities. [other wrong options] [Discuss in forum] Raw materials is stock. Finished products in stock. Semi-finished products in the process. |
Q59 ⇒ The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal) p.i.n. [other wrong options] [Discuss in forum] p(1 + i.n) p(1 + i)n p(1 - i.n) |
Q60 ⇒ 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. 16105 [other wrong options] [Discuss in forum] 15000 18105 12500 |
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