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- Question
Which of the following is not a component of the fixed capital for a chemical plant facility?
Options- A. Raw materials inventory.
- B. Utilities plants.
- C. Process equipment.
- D. Emergency facilities.
- Correct Answer
- Raw materials inventory.
- 1. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the
Options- A. overhead cost
- B. working capital
- C. indirect production cost
- D. direct production cost Discuss
- 2. Which of the following does not come under the sales expenses for a product of a chemical plant?
Options- A. Advertising
- B. Warehousing
- C. Legal fees
- D. Customer service. Discuss
- 3. Total product cost of a chemical plant does not include the __________ cost.
Options- A. market survey
- B. operating labour, supervision and supplies
- C. overhead and utilities
- D. depreciation, property tax and insur-rance Discuss
- 4. Factory manufacturing cost is the sum of the direct production cost
Options- A. fixed charges and plant overhead cost.
- B. and plant overhead cost.
- C. plant overhead cost and administrative expenses.
- D. none of these. Discuss
- 5. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be
Options- A.
- B. 1000 (1 + 0.1)20
- C.
- D.
Discuss
- 6. For a typical project, the cumulative cash flow is zero at the
Options- A. end of the project life.
- B. break even point.
- C. start up.
- D. end of the design stage. Discuss
- 7. Effective and nominal interest rates are equal, when the interest is compounded
Options- A. annually
- B. fortnightly
- C. monthly
- D. half-yearly Discuss
- 8. Depreciation is __________ in profit with time.
Options- A. decrease
- B. increase
- C. no change
- D. none of these Discuss
- 9. Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser?
Options- A. Coal gasification
- B. Steam reforming of naphtha
- C. Alectrolysis of water
- D. Coke oven gas Discuss
- 10. __________ of depreciation calculation does not take into account the interest on investments.
Options- A. Present worth method
- B. Sinking fund method
- C. Sum of the years-digits method
- D. all (a), (b) and (c) Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: working capital
Correct Answer: Legal fees
Correct Answer: market survey
Correct Answer: fixed charges and plant overhead cost.
Correct Answer:
Correct Answer: break even point.
Correct Answer: annually
Correct Answer: decrease
Correct Answer: Alectrolysis of water
Correct Answer: Sum of the years-digits method
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