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- Question
Which of the following relationship is not correct is case of a chemical process plant?
Options- A. Manufacturing cost = direct product cost + fixed charges + plant overhead costs
- B. General expenses = administrative expenses + distribution & marketing expenses
- C. Total product cost = manufacturing cost + general expenses
- D. Total product cost = direct production cost + plant overhead cost.
- Correct Answer
- Total product cost = direct production cost + plant overhead cost.
- 1. __________ method for profitability evaluation of a project does not account for investment cost due to land.
Options- A. Net present worth
- B. Pay out period
- C. Discounted cash flow
- D. Rate of return on investment Discuss
- 2. 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
- 3. 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
- 4. 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
- 5. 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
- 6. In a manufacturing industry, break even point occurs, when the
Options- A. total annual rate of production equals the assigned value.
- B. total annual product cost equals the total annual sales.
- C. annual profit equals the expected value.
- D. annual sales equals the fixed cost. Discuss
- 7. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
Options- A. 10
- B. 20
- C. >20
- D. < 20 Discuss
- 8. Pick out the wrong statement.
Options- A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity).
- B. Return on equity = profit after tax/net worth.
- C. Working capital turn over ratio = sales/net working capital.
- D. Total cost of production is more than net sales realisation (NSR) at break even point. Discuss
- 9. "Break-even point" is the point of intersection of
Options- A. fixed cost and total cost.
- B. total cost and sales revenue.
- C. fixed cost and sales revenue.
- D. none of these. Discuss
- 10. Utilities cost in the operation of chemical process plant comes under the
Options- A. plant overhead cost
- B. fixed charges
- C. direct production cost
- D. general expenses Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: Pay out period
Correct Answer: Repairs and maintenance cost.
Correct Answer: Titanium
Correct Answer: profit before interest and tax i.e., net profit + interest + tax
Correct Answer: time of starting of job and also about how much work should be completed during a particular period.
Correct Answer: total annual product cost equals the total annual sales.
Correct Answer: >20
Correct Answer: Total cost of production is more than net sales realisation (NSR) at break even point.
Correct Answer: total cost and sales revenue.
Correct Answer: direct production cost
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