Chemical Engineering Plant Economics problems
- 1. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
Options- A. 10
- B. 20
- C. >20
- D. < 20 Discuss
Correct Answer: >20
- 2. Pick out the wrong statement.
Options- A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity).
- B. Return on equity = profit after tax/net worth.
- C. Working capital turn over ratio = sales/net working capital.
- D. Total cost of production is more than net sales realisation (NSR) at break even point. Discuss
Correct Answer: Total cost of production is more than net sales realisation (NSR) at break even point.
- 3. "Break-even point" is the point of intersection of
Options- A. fixed cost and total cost.
- B. total cost and sales revenue.
- C. fixed cost and sales revenue.
- D. none of these. Discuss
Correct Answer: total cost and sales revenue.
- 4. Utilities cost in the operation of chemical process plant comes under the
Options- A. plant overhead cost
- B. fixed charges
- C. direct production cost
- D. general expenses Discuss
Correct Answer: direct production cost
- 5. Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
Options- A. water supply
- B. running a control laboratory
- C. property protection
- D. medical services Discuss
Correct Answer: water supply
- 6. Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
Options- A. declining balance
- B. straight line
- C. sum of the years digit
- D. none of these Discuss
Correct Answer: straight line
- 7. Pick out the wrong statement.
Options- A. Gross revenue is that total amount of capital received as a result of the sale of goods or service.
- B. Net revenue is the total profit remaining after deducting all costs excluding taxes.
- C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio.
- D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval. Discuss
Correct Answer: Net revenue is the total profit remaining after deducting all costs excluding taxes.
- 8. Gross earning is equal to the total income minus
Options- A. total product cost
- B. fixed cost
- C. income tax
- D. none of these Discuss
Correct Answer: total product cost
- 9. Which of the following elements is not included in the scope of market analysis?
Options- A. Competition from other manufactures.
- B. Product distribution.
- C. Opportunities
- D. Economics Discuss
Correct Answer: Economics
- 10. Direct costs component of the fixed capital consists of
Options- A. contingencies
- B. onsite and offsite costs
- C. labour costs
- D. raw material costs Discuss
Correct Answer: onsite and offsite costs
More in Chemical Engineering:
Programming
Copyright ©CuriousTab. All rights reserved.