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Chemical Engineering :: Chemical Engineering Plant Economics

  1. In financial accounting of a chemical plant, which of the following relationship is invalid?

  2. A.
    Assets = equities
    B.
    Assets = liabilities + net worth
    C.
    Total income = costs + profits
    D.
    Assets = capital.

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  3. Depreciation

  4. A.
    costs (on annual basis) are constant when the straight line method is used for its determination.
    B.
    is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.
    C.
    does figure in the calculation of income tax liability on cash flows from an investment.
    D.
    all (a), (b) and (c).

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  5. 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.

  6. A.
    n
    B.
    n0.6
    C.
    n0.4
    D.
    n

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  7. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

  8. A.
    manufacturing cost.
    B.
    depreciation by sinking fund method.
    C.
    discrete compound interest.
    D.
    cash ratio.

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  9. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

  10. A.
    0.1
    B.
    0.6
    C.
    0.2
    D.
    0.8

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

  12. A.
    Advertising
    B.
    Warehousing
    C.
    Legal fees
    D.
    Customer service.

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  13. 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

  14. A.
    (1 + i)n/S
    B.
    S/(1 + i)n
    C.
    S/(1 + in)
    D.
    S/(1 + n)i

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  15. Effluent treatment cost in a chemical plant is categorised as the __________ cost.

  16. A.
    fixed
    B.
    overhead
    C.
    utilities
    D.
    capital

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

  18. A.
    fixed charges and plant overhead cost.
    B.
    and plant overhead cost.
    C.
    plant overhead cost and administrative expenses.
    D.
    none of these.

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  19. Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

  20. A.
    Electrical installation cost.
    B.
    Equipment installation cost.
    C.
    Cost for piping.
    D.
    Equipment insulation cost.

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