Chemical Engineering Plant Economics MCQ Questions & Answers

81

Which of the following is the costliest material of construction used in pressure vessel construction?

A) Low alloy steel B) Lead C) Titanium D) High alloy steel

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Answer & Solution

Answer: Option C

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82

Scheduling provides information about the

A) Proper utilisation of machines B) Means to minimise idle time for machines C) Time of completion of job D) Time of starting of job and also about how much work should be completed during a particular period

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Answer & Solution

Answer: Option D

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83

Gross earning is equal to the total income minus

A) Total product cost B) Fixed cost C) Income tax D) None of these

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Answer & Solution

Answer: Option A

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84

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A) Net present worth B) Pay out period C) Discounted cash flow D) Rate of return on investment

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Answer & Solution

Answer: Option B

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85

__________ of depreciation calculation accounts for the interest on investement.

A) Straight line method B) Declining balance C) Both A and B D) Neither A nor B

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Answer & Solution

Answer: Option D

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86

Pick out the wrong statement.

A) Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner's contribution i.e., debt-equity ratio = total debt/net worth B) Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt) C) Working capital = current assets + current liability D) Turn over = opening stock + production closing stock

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Answer & Solution

Answer: Option C

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87

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

A) 5 to 10 B) 20 to 30 C) 40 to 50 D) 60 to 70

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Answer & Solution

Answer: Option B

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88

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

A) Declining balance B) Straight line C) Sum of the years digit D) None of these

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Answer & Solution

Answer: Option B

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89

Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

A) Straight line B) Sinking fund C) Present worth D) Declining balance

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Answer & Solution

Answer: Option D

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90

The payback method for the measurement of return on investment

A) Gives a correct picture of profitability B) Underemphasises liquidity C) Does not measure the discounted rate of return D) Takes into account the cash inflows after the recovery of investments

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Answer & Solution

Answer: Option C

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering