Discussion
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- Question
The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
Options- A. cash ratio
- B. net working capital
- C. current ratio
- D. liquids assets
- Correct Answer
- net working capital
- 1. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.
Options- A. 4
- B. 13
- C. 22
- D. 34 Discuss
- 2. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
Options- A. 1
- B. 5
- C. 10
- D. 30 Discuss
- 3. Optimum number of effects in a multiple effect evaporator is decided by the
Options- A. cost benefit analysis.
- B. floor area availability.
- C. terminal parameters.
- D. evaporation capacity required. Discuss
- 4. If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by
Options- A. (1 + i)n/S
- B. S/(1 + i)n
- C. S/(1 + in)
- D. S/(1 + n)i Discuss
- 5. Gantt chart (or Bar chart) is helpful in
Options- A. efficient utilisation of manpower and machines.
- B. preparing production schedule.
- C. efficient despatching of products.
- D. inventory control. Discuss
- 6. In financial accounting of a chemical plant, which of the following relationship is invalid?
Options- A. Assets = equities
- B. Assets = liabilities + net worth
- C. Total income = costs + profits
- D. Assets = capital. Discuss
- 7. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project
Options- A. decreases
- B. increases
- C. increases linearly
- D. remains constant Discuss
- 8. Effluent treatment cost in a chemical plant is categorised as the __________ cost.
Options- A. fixed
- B. overhead
- C. utilities
- D. capital Discuss
- 9. Which of the following is not a current asset of a chemical company?
Options- A. Inventories
- B. Marketable securities
- C. Chemical equipments
- D. None of these. Discuss
- 10. Pick out the wrong statement.
Options- A. Gross margin = net income - net expenditure
- B. Net sales realisation (NSR) = Gross sales - selling expenses
- C. At break even point, NSR is more than the total production cost
- D. Net profit = Gross margin - depreciation - interest Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: 13
Correct Answer: 10
Correct Answer: cost benefit analysis.
Correct Answer: S/(1 + i)n
Correct Answer: preparing production schedule.
Correct Answer: Assets = capital.
Correct Answer: decreases
Correct Answer: utilities
Correct Answer: Chemical equipments
Correct Answer: At break even point, NSR is more than the total production cost
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