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- Question
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
Options- A. one
- B. three
- C. six
- D. twelve
- Correct Answer
- one
- 1. Pick out the wrong statement.
Options- 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. Discuss
- 2. Pick out the wrong statement.
Options- A. Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes.
- B. A cost index is merely a number for a given year showing the cost at that time relative to a certain base year.
- C. Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment.
- D. Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary. Discuss
- 3. The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
Options- 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. Discuss
- 4. The payback method for the measurement of return on investment
Options- 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. Discuss
- 5. Payback period
Options- A. and economic life of a project are the same.
- B. is the length of time over which the earnings on a project equals the investment.
- C. is affected by the variation in earnings after the recovery of the investment.
- D. all (a), (b) and (c). Discuss
- 6. Personnel working in the market research group is reponsible for the job of
Options- A. equipment selection.
- B. product evaluation.
- C. equipment design.
- D. cost estimation. Discuss
- 7. Scheduling provides information about the
Options- A. proper utilisation of machines.
- B. means to minimise idle time for machines.
- C. time of completion of job.
- D. time of starting of job and also about how much work should be completed during a particular period. Discuss
- 8. Operating profit of a chemical plant is equal to
Options- A. profit before interest and tax i.e., net profit + interest + tax
- B. profit after tax plus depreciation
- C. net profit + tax
- D. profit after tax Discuss
- 9. Which of the following is the costliest material of construction used in pressure vessel construction?
Options- A. Low alloy steel
- B. Lead
- C. Titanium
- D. High alloy steel Discuss
- 10. Which of the following is not a component of depreciation cost?
Options- 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. Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: Working capital = current assets + current liability.
Correct Answer: Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary.
Correct Answer: book value at the end of (n - 1)th year,
Correct Answer: does not measure the discounted rate of return.
Correct Answer: is the length of time over which the earnings on a project equals the investment.
Correct Answer: product evaluation.
Correct Answer: time of starting of job and also about how much work should be completed during a particular period.
Correct Answer: profit before interest and tax i.e., net profit + interest + tax
Correct Answer: Titanium
Correct Answer: Repairs and maintenance cost.
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