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  • Question

  • Profit is equal to revenue minus


  • Options
  • A. book value
  • B. total cost
  • C. operating cost
  • D. none of these

  • Correct Answer
  • total cost 

    • Chemical Engineering Plant Economics problems

    Search Results

    • 1. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
      The present cost of the plant = original cost   x
      The most major component of this cost index is

    • Options
    • A. fabricated equipment and machinery.
    • B. process instruments and control.
    • C. pumps and compressor.
    • D. electrical equipments and material.
      • Discuss
    • 2. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

    • Options
    • A. cash reserve
    • B. capital
    • C. turnover
    • D. investment
      • Discuss
    • 3. If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

    • Options
    • A.
    • B.
    • C. R(1 + i)n
    • D. R/(1 + i)n
      • Discuss
    • 4. A balance sheet for an industrial concern shows

    • Options
    • A. the financial condition at any given time.
    • B. only current assets.
    • C. only fixed assets.
    • D. only current and fixed assets.
      • Discuss
    • 5. __________ 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
    • 6. Generally, income taxes are based on the

    • Options
    • A. total income
    • B. gross earning
    • C. total product cost
    • D. fixed cost
      • Discuss
    • 7. Functional depreciation of an equipment is the measure of decrease in its value due to its

    • Options
    • A. ageing
    • B. wear and tear
    • C. obsolescence
    • D. breakdown or accident
      • Discuss
    • 8. 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from

    • Options
    • A. 1.2 to 1.4
    • B. 2.5 to 2.7
    • C. 4.2 to 4.4
    • D. 6.2 to 6.4
      • Discuss
    • 9. Pick out the correct statement.

    • Options
    • A. Difference between income and expense is termed as gross revenue.
    • B. Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date.
    • C. Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment.
    • D. Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale.
      • Discuss
    • 10. Depreciation

    • Options
    • A. costs (on annual basis) are constant when the straight line method is used for its determination.
    • B. is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.
    • C. does figure in the calculation of income tax liability on cash flows from an investment.
    • D. all (a), (b) and (c).
      • Discuss

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