Chemical Engineering Plant Economics MCQ Questions & Answers

61

Manufacturing cost in a chemical company does not include the

A) Fixed charges B) Plant overheads C) Direct products cost D) Administrative expenses

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Answer & Solution

Answer: Option D

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62

Which of the following is not a component of depreciation cost?

A) Repairs and maintenance cost B) Loss due to obsolescence of the equipment C) Loss due to decrease in the demand of product D) Loss due to accident/breakdown in the machinery

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Answer & Solution

Answer: Option A

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63

Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

A) Water supply B) Running a control laboratory C) Property protection D) Medical services

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Answer & Solution

Answer: Option A

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64

A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

A) Current asset B) Current liability C) Long term debt D) Profit

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Answer & Solution

Answer: Option D

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65

Pick out the wrong statement.

A) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes B) A cost index is merely a number for a given year showing the cost at that time relative to a certain base year C) Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment D) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

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Answer & Solution

Answer: Option D

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66

Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

A) 15 B) 35 C) 55 D) 75

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Answer & Solution

Answer: Option B

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67

The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

A) P.i.n. B) P(1 + i.n) C) P(1 + i)n D) P(1 - i.n)

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Answer & Solution

Answer: Option A

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68

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.

A) 15000 B) 16105 C) 18105 D) 12500

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Answer & Solution

Answer: Option B

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69

'P' is the investment made on an equipment, 'S' is its salvage value and 'n' is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

A) $$\frac{{{\text{P}} - {\text{S}}}}{{\text{n}}}$$ B) $$1 - {\left( {\frac{{\text{P}}}{{\text{S}}}} \right)^{\frac{1}{{\text{m}}}}}$$ C) $$\frac{{\text{m}}}{{\text{n}}} \cdot \left( {{\text{P}} - {\text{S}}} \right)$$ D) $$\frac{{2\left( {{\text{n}} - {\text{m}} + 1} \right)}}{{{\text{n}}\left( {{\text{n}} + 1} \right)}} \cdot \left( {{\text{P}} - {\text{S}}} \right)$$

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Answer & Solution

Answer: Option D

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70

Profit is equal to revenue minus

A) Book value B) Total cost C) Operating cost D) None of these

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Answer & Solution

Answer: Option B

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering