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.Management Sciences
Category: Plant-Economics
Effluent treatment cost in a chemical plant is categorised as the __________________ cost?
A. Fixed
B. Overhead
C. Utilities
D. Capital
The ______________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities ?
A. Cash ratio
B. Net working capital
C. Current ratio
D. Liquids assets
The ‘total capital investment’ for a chemical process plant comprises of the fixed capital investment and the_________________?
A. Overhead cost
B. Working capital
C. Indirect production cost
D. Direct production cost
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 × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is____________________?
A. Fabricated equipment and machinery
B. Process instruments and control
C. Pumps and compressor
D. Electrical equipments and material
The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?
A. Initial cost
B. Book value at the end of (n – 1)th year
C. Depreciation during the (n – 1)th year
D. Difference between initial cost and salvage value
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)
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
Pick out the wrong statement ?
A. Gross revenue is that total amount of capital received as a result of the sale of goods or service
B. Net revenue is the total profit remaining after deducting all costs excluding taxes
C. The ratio of immediately available cash to the total current liabilities is known as the cash
ratio
D. Consolidated income statement based on a given time period indicates surplus capital and
shows the relationship among total income, costs & profit over the time interval
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