Chemical Engineering Plant Economics - Part 1 Online Exam Quiz
Chemical Engineering Plant Economics - Part 1 GK Quiz. Question and Answers related to Chemical Engineering Plant Economics - Part 1. MCQ (Multiple Choice Questions with answers about Chemical Engineering Plant Economics - Part 1
Direct costs component of the fixed capital consists of
A : contingencies
B : onsite and offsite costs
C : labour costs
D : raw material costs
Out of the following, the depreciation calculated by the __________ method is the maximum.
A : diminishing balance
B : straight line
C : sum of the years digit
D : sinking fund
The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.
A : 0.1 to 1
B : 1 to 2
C : 10 to 20
D : 50 to 60
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
Pick out the wrong statement.
A : The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.
B : Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.
C : Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.
D : In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).
__________ 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
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
A : 15%
B : 10%
C : 1.5%
D : 150%
Nominal and effective interest rates are equal, when the interest is compounded
A : quarterly
B : semi-annually
C : annually
D : in no case, they are equal
Which of the following elements is not included in the scope of market analysis ?
A : Competition from other manufactures.
B : Product distribution.
C : Opportunities
D : Economics
__________ 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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