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.Management Sciences
Category: Plant-Economics
Which of the following is not a component of working capital ?
A. Raw materials is stock
B. Finished products in stock
C. Transportation facilities
D. Semi-finished products in the process
Pick out the correct statement ?
A. Difference between income and expense is termed as gross revenue
B. Unamortised cost is the difference between the original cost of a property and all the
depreciation charges made to date
C. Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the
investment
D. Scrap value is the net amount of money obtainable from the sale of used property over and
above any charges involved in its removal & sale
Depreciation is ____________________ in profit with time?
A. Decrease
B. Increase
C. No change
D. None of these
In an ordinary chemical plant, electrical installation cost may be about ____________________?
A. 10-15% of purchased equipment cost
B. 3-10% of fixed capital investment
C. Either A. or B.
D. Neither A. nor B.
Which of the following is not a component of depreciation cost ?
A. Repairs and maintenance cost
B. Loss due to obsolescence of the equipment
C. Loss due to decrease in the demand of product
D. Loss due to accident/breakdown in the machinery
Optimum economic pipe diameter for fluid is determined by the___________________?
A. Viscosity of the fluid
B. Density of the fluid
C. Total cost considerations (pumping cost plus fixed cost of the pipe)
D. None of these
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as __________________?
A. Perpetuity
B. Capital charge factor
C. Annuity
D. Future worth
A shareholder has ______________ say in the affairs of company management compared to a debenture holder ?
A. More
B. Less
C. Same
D. No
Factory manufacturing cost is the sum of the direct production cost_________________?
A. Fixed charges and plant overhead cost
B. And plant overhead cost
C. Plant overhead cost and administrative expenses
D. None of these
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