Category: Plant-Economics

A. Product inventory
B. In-process inventory
C. Minimum cash reserve
D. Storage facilities

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

A. 5 to 10
B. 20 to 30
C. 40 to 50
D. 60 to 70

A. Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of
owner’s contribution i.e., debt-equity ratio = total debt/net worth
B. Return on investment (ROI) is the ratio of profit before interest & tax and capital employed
(i.e. net worth + total debt)
C. Working capital = current assets + current liability
D. Turn over = opening stock + production closing stock

A. Total income
B. Gross earning
C. Total product cost
D. Fixed cost

A. Gives a correct picture of profitability
B. Underemphasises liquidity
C. Does not measure the discounted rate of return
D. Takes into account the cash inflows after the recovery of investments

A. Present worth method
B. Sinking fund method
C. Sum of the years-digits method
D. All A, B. and C.

A. 1.2 to 1.4
B. 2.5 to 2.7
C. 4.2 to 4.4
D. 6.2 to 6.4

A. Straight line method
B. Declining balance
C. Both A. and B.
D. Neither A. nor B.

A. 10 to 20
B. 35 to 45
C. 55 to 65
D. 70 to 80