Chemical Engineering Plant Economics MCQ Questions & Answers

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

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

Answer & Solution Discuss in Board Save for Later

2.
Which of the following is not a current asset of a chemical company?

A. Inventories

B. Marketable securities

C. Chemical equipments

D. None of these

Answer & Solution Discuss in Board Save for Later

3.
In declining balance method of depreciation calculation, the

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

Answer & Solution Discuss in Board Save for Later

4.
Generally, income taxes are based on the

A. Total income

B. Gross earning

C. Total product cost

D. Fixed cost

Answer & Solution Discuss in Board Save for Later

5.
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

A. Perpetuity

B. Capital charge factor

C. Annuity

D. Future worth

Answer & Solution Discuss in Board Save for Later

6.
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

A. Decreases

B. Increases

C. Increases linearly

D. Remains constant

Answer & Solution Discuss in Board Save for Later

7.
Which of the following relationship is not correct is case of a chemical process plant?

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

Answer & Solution Discuss in Board Save for Later

8.
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

A. Cash reserve

B. Rate of return on investment

C. Payout period

D. Discounted cash flow based on full life performance

Answer & Solution Discuss in Board Save for Later

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

A. General expenses

B. Overhead cost

C. R & D cost

D. None of these

Answer & Solution Discuss in Board Save for Later

10.
Factory manufacturing cost is the sum of the direct production cost

A. Fixed charges and plant overhead cost

B. And plant overhead cost

C. Plant overhead cost and administrative expenses

D. None of these

Answer & Solution Discuss in Board Save for Later

Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering

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

Answer & Solution

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

Answer & Solution

3. In declining balance method of depreciation calculation, the

Answer & Solution

4. Generally, income taxes are based on the

Answer & Solution

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

Answer & Solution

6. 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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Read More Section(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.
Which of the following is not a current asset of a chemical company?

3.
In declining balance method of depreciation calculation, the

4.
Generally, income taxes are based on the

5.
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

6.
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

7.
Which of the following relationship is not correct is case of a chemical process plant?

8.
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

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

10.
Factory manufacturing cost is the sum of the direct production cost