Discussion
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- Question
In an ordinary chemical plant, electrical installation cost may be about
Options- A. 10-15% of purchased equipment cost.
- B. 3-10% of fixed capital investment.
- C. either (a) or (b).
- D. neither (a) nor (b).
- Correct Answer
- either (a) or (b).
- 1. Direct costs component of the fixed capital consists of
Options- A. contingencies
- B. onsite and offsite costs
- C. labour costs
- D. raw material costs Discuss
- 2. Which of the following elements is not included in the scope of market analysis?
Options- A. Competition from other manufactures.
- B. Product distribution.
- C. Opportunities
- D. Economics Discuss
- 3. 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
- 4. 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
- 5. 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
- 6. Which of the following is not a component of working capital?
Options- A. Raw materials is stock.
- B. Finished products in stock.
- C. Transportation facilities.
- D. Semi-finished products in the process. Discuss
- 7. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.
Options- A. 30
- B. 50
- C. 75
- D. 95 Discuss
- 8. Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.
Options- A. 10 to 20
- B. 35 to 45
- C. 55 to 65
- D. 70 to 80 Discuss
- 9. In declining balance method of depreciation calculation, the
Options- A. value of the asset decreases linearly with time.
- B. annual cost of depreciation is same every year.
- C. annual depreciation is the fixed percentage of the property value at the beginning of the particular year.
- D. none of these. Discuss
- 10. For a given fluid, as the pipe diameter increases, the pumping cost
Options- A. decreases.
- B. increases.
- C. remains the same.
- D. may increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian. Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: onsite and offsite costs
Correct Answer: Economics
Correct Answer: total product cost
Correct Answer: Net revenue is the total profit remaining after deducting all costs excluding taxes.
Correct Answer: straight line
Correct Answer: Transportation facilities.
Correct Answer: 50
Correct Answer: 35 to 45
Correct Answer: annual depreciation is the fixed percentage of the property value at the beginning of the particular year.
Correct Answer: decreases.
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