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- Question
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?
Options- A. Multiple straight line method
- B. Sinking fund method
- C. Declining balance method
- D. Sum of the years digit method
- Correct Answer
- Sinking fund method
- 1. 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
- 2. 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
- 3. '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
- 4. 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
- 5. Generally, income taxes are based on the
Options- A. total income
- B. gross earning
- C. total product cost
- D. fixed cost Discuss
- 6. Which of the following is not a component of the working capital for a chemical process plant?
Options- A. Product inventory.
- B. In-process inventory.
- C. Minimum cash reserve.
- D. Storage facilities. Discuss
- 7. Manufacturing cost in a chemical company does not include the
Options- A. fixed charges.
- B. plant overheads.
- C. direct products cost.
- D. administrative expenses. Discuss
- 8. Which of the following ceramic packing materials is the costliest of all?
Options- A. Berl saddles
- B. Raschig rings
- C. Pall rings
- D. Intalox saddles Discuss
- 9. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
Options- A. 0.1
- B. 0.6
- C. 0.2
- D. 0.8 Discuss
- 10. In a chemical process plant, the total product cost comprises of manufacturing cost and the
Options- A. general expenses
- B. overhead cost
- C. R & D cost
- D. none of these Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: all (a), (b) and (c).
Correct Answer: Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date.
Correct Answer: 4.2 to 4.4
Correct Answer: obsolescence
Correct Answer: gross earning
Correct Answer: Storage facilities.
Correct Answer: administrative expenses.
Correct Answer: Berl saddles
Correct Answer: 0.6
Correct Answer: general expenses
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