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- Question
"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.
- Correct Answer
- total cost and sales revenue.
- 1. 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
- 2. 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
- 3. 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
- 4. 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. Discuss
- 5. __________ 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
- 6. 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
- 7. Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
Options- A. water supply
- B. running a control laboratory
- C. property protection
- D. medical services Discuss
- 8. Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
Options- A. declining balance
- B. straight line
- C. sum of the years digit
- D. none of these Discuss
- 9. Pick out the wrong statement.
Options- 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. Discuss
- 10. Gross earning is equal to the total income minus
Options- A. total product cost
- B. fixed cost
- C. income tax
- D. none of these Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: Total cost of production is more than net sales realisation (NSR) at break even point.
Correct Answer: >20
Correct Answer: total annual product cost equals the total annual sales.
Correct Answer: Total product cost = direct production cost + plant overhead cost.
Correct Answer: Pay out period
Correct Answer: direct production cost
Correct Answer: water supply
Correct Answer: straight line
Correct Answer: Net revenue is the total profit remaining after deducting all costs excluding taxes.
Correct Answer: total product cost
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