Chemical Engineering Plant Economics MCQ Questions & Answers

11

Utilities cost in the operation of chemical process plant comes under the

A) Plant overhead cost B) Fixed charges C) Direct production cost D) General expenses

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Answer & Solution

Answer: Option C

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12

Which of the following does not come under the sales expenses for a product of a chemical plant?

A) Advertising B) Warehousing C) Legal fees D) Customer service

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Answer & Solution

Answer: Option C

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13

Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.

A) 30 B) 50 C) 75 D) 95

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Answer & Solution

Answer: Option B

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14

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

A) n B) n^0.6 C) n^0.4 D) $$\sqrt {\text{n}} $$

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Answer & Solution

Answer: Option B

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15

An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

A) $$1000{\left( {1 + \frac{{0.1}}{4}} \right)^{20}}$$ B) $$1000\,{\left( {1 + 0.1} \right)^{20}}$$ C) $$1000{\left( {1 + \frac{{0.1}}{4}} \right)^5}$$ D) $$1000{\left( {1 + \frac{{0.1}}{2}} \right)^5}$$

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Answer & Solution

Answer: Option A

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16

Direct costs component of the fixed capital consists of

A) Contingencies B) Onsite and offsite costs C) Labour costs D) Raw material costs

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Answer & Solution

Answer: Option B

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17

Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

A) 10 to 20 B) 20 to 40 C) 45 to 60 D) 65 to 75

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Answer & Solution

Answer: Option B

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18

Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.

A) 4 B) 13 C) 22 D) 34

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Answer & Solution

Answer: Option B

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19

If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

A) $$\frac{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}}}}{{\text{S}}}$$ B) $$\frac{{\text{S}}}{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}}}}$$ C) $$\frac{{\text{S}}}{{\left( {1 + {\text{in}}} \right)}}$$ D) $$\frac{{\text{S}}}{{{{\left( {1 + {\text{n}}} \right)}^{\text{i}}}}}$$

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Answer & Solution

Answer: Option B

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20

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

A) 10 to 20 B) 35 to 45 C) 55 to 65 D) 70 to 80

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Answer & Solution

Answer: Option B

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering