Category: Plant-Economics

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)

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