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Chemical Engineering :: Chemical Engineering Plant Economics

  1. Generally, income taxes are based on the

  2. A.
    total income
    B.
    gross earning
    C.
    total product cost
    D.
    fixed cost

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  3. A balance sheet for an industrial concern shows

  4. A.
    the financial condition at any given time.
    B.
    only current assets.
    C.
    only fixed assets.
    D.
    only current and fixed assets.

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  5. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
    The present cost of the plant = original cost   x
    The most major component of this cost index is

  6. A.
    fabricated equipment and machinery.
    B.
    process instruments and control.
    C.
    pumps and compressor.
    D.
    electrical equipments and material.

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

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

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  9. In a chemical process plant, the total product cost comprises of manufacturing cost and the

  10. A.
    general expenses
    B.
    overhead cost
    C.
    R & D cost
    D.
    none of these

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  11. Which of the following is not a component of the fixed capital for a chemical plant facility?

  12. A.
    Raw materials inventory.
    B.
    Utilities plants.
    C.
    Process equipment.
    D.
    Emergency facilities.

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  13. 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

  14. A.
    B.
    1000 (1 + 0.1)20
    C.
    D.

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  15. Functional depreciation of an equipment is the measure of decrease in its value due to its

  16. A.
    ageing
    B.
    wear and tear
    C.
    obsolescence
    D.
    breakdown or accident

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  17. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

  18. A.
    cash reserve
    B.
    capital
    C.
    turnover
    D.
    investment

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  19. Effective and nominal interest rates are equal, when the interest is compounded

  20. A.
    annually
    B.
    fortnightly
    C.
    monthly
    D.
    half-yearly

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