Chemical Engineering Plant Economics MCQ

Test your knowledge with important Chemical Engineering Plant Economics MCQ and their applications. These MCQs are beneficial for competitive exams too. Explore 30+ more Chemical Engineering Plant Economics MCQs on Bissoy. Bissoy App

• If an amount 'R' is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of 'i' is
  ক

  $${\text{R}}\left$$

  খ

  $${\text{R}}\left$$

  গ

  $${\text{R}}{\left( {1 + {\text{i}}} \right)^{\text{n}}}$$

  ঘ

  $$\frac{{\text{R}}}{{{{\left( {1 + {\text{i}}} \right)}^{\text{n}}}}}$$
• Which of the following elements is not included in the scope of market analysis?
  ক

  Competition from other manufactures

  খ

  Product distribution

  গ

  Opportunities

  ঘ

  Economics
• __________ of depreciation calculation does not take into account the interest on investments.
  ক

  Present worth method

  খ

  Sinking fund method

  গ

  Sum of the years-digits method

  ঘ

  All of the above
• Total product cost of a chemical plant does not include the __________ cost.
  ক

  Market survey

  খ

  Operating labour, supervision and supplies

  গ

  Overhead and utilities

  ঘ

  Depreciation, property tax and insur-rance
• Optimum number of effects in a multiple effect evaporator is decided by the
  ক

  Cost benefit analysis

  খ

  Floor area availability

  গ

  Terminal parameters

  ঘ

  Evaporation capacity required
• Gantt chart (or Bar chart) is helpful in
  ক

  Efficient utilisation of manpower and machines

  খ

  Preparing production schedule

  গ

  Efficient despatching of products

  ঘ

  Inventory control
• The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
  ক

  Cash ratio

  খ

  Net working capital

  গ

  Current ratio

  ঘ

  Liquids assets
• Break-even point is the point of intersection of
  ক

  Fixed cost and total cost

  খ

  Total cost and sales revenue

  গ

  Fixed cost and sales revenue

  ঘ

  None of these
• __________ taxes are based on gross earnings.
  ক

  Property

  খ

  Excise

  গ

  Income

  ঘ

  Capital gain
• 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?
  ক

  Electrical installation cost

  খ

  Equipment installation cost

  গ

  Cost for piping

  ঘ

  Equipment insulation cost
• The payback method for the measurement of return on investment
  ক

  Gives a correct picture of profitability

  খ

  Underemphasises liquidity

  গ

  Does not measure the discounted rate of return

  ঘ

  Takes into account the cash inflows after the recovery of investments
• Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
  ক

  Straight line

  খ

  Sinking fund

  গ

  Present worth

  ঘ

  Declining balance
• Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
  ক

  Declining balance

  খ

  Straight line

  গ

  Sum of the years digit

  ঘ

  None of these
• Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.
  ক

  5 to 10

  খ

  20 to 30

  গ

  40 to 50

  ঘ

  60 to 70
• __________ of depreciation calculation accounts for the interest on investement.
  ক

  Straight line method

  খ

  Declining balance

  গ

  Both A and B

  ঘ

  Neither A nor B
• __________ method for profitability evaluation of a project does not account for investment cost due to land.
  ক

  Net present worth

  খ

  Pay out period

  গ

  Discounted cash flow

  ঘ

  Rate of return on investment
• Gross earning is equal to the total income minus
  ক

  Total product cost

  খ

  Fixed cost

  গ

  Income tax

  ঘ

  None of these
• Scheduling provides information about the
  ক

  Proper utilisation of machines

  খ

  Means to minimise idle time for machines

  গ

  Time of completion of job

  ঘ

  Time of starting of job and also about how much work should be completed during a particular period
• Which of the following is the costliest material of construction used in pressure vessel construction?
  ক

  Low alloy steel

  খ

  Lead

  গ

  Titanium

  ঘ

  High alloy steel
• Payback period
  ক

  And economic life of a project are the same

  খ

  Is the length of time over which the earnings on a project equals the investment

  গ

  Is affected by the variation in earnings after the recovery of the investment

  ঘ

  All of the above
• Personnel working in the market research group is reponsible for the job of
  ক

  Equipment selection

  খ

  Product evaluation

  গ

  Equipment design

  ঘ

  Cost estimation
• In financial accounting of a chemical plant, which of the following relationship is invalid?
  ক

  Assets = equities

  খ

  Assets = liabilities + net worth

  গ

  Total income = costs + profits

  ঘ

  Assets = capital
• Construction expenses are roughly __________ percent of the total direct cost of the plant.
  ক

  2

  খ

  10

  গ

  30

  ঘ

  50
• Effluent treatment cost in a chemical plant is categorised as the __________ cost.
  ক

  Fixed

  খ

  Overhead

  গ

  Utilities

  ঘ

  Capital
• A balance sheet for an industrial concern shows
  ক

  The financial condition at any given time

  খ

  Only current assets

  গ

  Only fixed assets

  ঘ

  Only current and fixed assets
• 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.<br>The present cost of the plant = $${\text{original cost}} \times \frac{{{\text{index value at present}}}}{{{\text{index value at time original cost was obtained}}}}.$$<br>The most major component of this cost index is
  ক

  Fabricated equipment and machinery

  খ

  Process instruments and control

  গ

  Pumps and compressor

  ঘ

  Electrical equipments and material
• A shareholder has __________ say in the affairs of company management compared to a debenture holder.
  ক

  More

  খ

  Less

  গ

  Same

  ঘ

  No
• Profit is equal to revenue minus
  ক

  Book value

  খ

  Total cost

  গ

  Operating cost

  ঘ

  None of these
• '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
  ক

  $$\frac{{{\text{P}} - {\text{S}}}}{{\text{n}}}$$

  খ

  $$1 - {\left( {\frac{{\text{P}}}{{\text{S}}}} \right)^{\frac{1}{{\text{m}}}}}$$

  গ

  $$\frac{{\text{m}}}{{\text{n}}} \cdot \left( {{\text{P}} - {\text{S}}} \right)$$

  ঘ

  $$\frac{{2\left( {{\text{n}} - {\text{m}} + 1} \right)}}{{{\text{n}}\left( {{\text{n}} + 1} \right)}} \cdot \left( {{\text{P}} - {\text{S}}} \right)$$
• 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.
  ক

  15000

  খ

  16105

  গ

  18105

  ঘ

  12500