Discussion
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- Question
Effluent treatment cost in a chemical plant is categorised as the __________ cost.
Options- A. fixed
- B. overhead
- C. utilities
- D. capital
- Correct Answer
- utilities
- 1. 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
- 2. 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
- 3. 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 Discuss
- 4. 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
- 5. 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
- 6. 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
- 7. 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
- 8. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
Options- A. Cash reserve.
- B. Rate of return on investment.
- C. Payout period.
- D. Discounted cash flow based on full life performance. Discuss
- 9. According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.
Options- A. n
- B. n0.6
- C. n0.4
- D. n Discuss
- 10. A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.
Options- A. current asset
- B. current liability
- C. long term debt
- D. profit Discuss
Chemical Engineering Plant Economics problems
Search Results
Correct Answer: decreases
Correct Answer: Assets = capital.
Correct Answer: net working capital
Correct Answer: 13
Correct Answer: 10
Correct Answer: Chemical equipments
Correct Answer: At break even point, NSR is more than the total production cost
Correct Answer: Cash reserve.
Correct Answer: n0.6
Correct Answer: profit
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