Q. A balance sheet for an industrial concern shows

  • (A) The financial condition at any given time
  • (B) Only current assets
  • (C) Only fixed assets
  • (D) Only current and fixed assets
πŸ’¬ Discuss
βœ… Correct Answer: (A) The financial condition at any given time

Q. _____ of depreciation calculation does not take into account the interest on investments.

  • (A) Present worth method
  • (B) Sinking fund method
  • (C) Sum of the years-digits method
  • (D) All (A), (B) and (C)
πŸ’¬ Discuss
βœ… Correct Answer: (C) Sum of the years-digits method

Q. _____ of depreciation calculation accounts for the interest on investment.

  • (A) Straight line method
  • (B) Declining balance
  • (C) Both (A) and (B)
  • (D) Neither (A) nor (B)
πŸ’¬ Discuss
βœ… Correct Answer: (D) Neither (A) nor (B)

Q. _______ method for profitability evaluation of a project does not account for investment cost due to land.

  • (A) Net present worth
  • (B) Pay out period
  • (C) Discounted cash flow
  • (D) Rate of return on investment
πŸ’¬ Discuss
βœ… Correct Answer: (B) Pay out period

Q. 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from _________ percent of the total product cost.

  • (A) 1 to 5
  • (B) 10 to 20
  • (C) 25 to 35
  • (D) 35 to 45
πŸ’¬ Discuss
βœ… Correct Answer: (B) 10 to 20

Q. 'Six-tenth factor' rule is used for estimating the

  • (A) Equipment installation cost
  • (B) Equipment cost by scaling
  • (C) Cost of piping
  • (D) Utilities cost
πŸ’¬ Discuss
βœ… Correct Answer: (B) Equipment cost by scaling

Q. 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for Rath year by the sum-of yearβ€Ÿs digit method will be

  • (A) (P - S)/n
  • (B) 1 - (P/S)^s/m
  • (C) (m/n) (P - S)
  • (D) [2 (n - m + 1)/n(n + 1)]. (P - S)
πŸ’¬ Discuss
βœ… Correct Answer: (D) [2 (n - m + 1)/n(n + 1)]. (P - S)

Q. '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

  • (A) 1.2 to 1.4
  • (B) 2.5 to 2.7
  • (C) 4.2 to 4.4
  • (D) 6.2 to 6.4
πŸ’¬ Discuss
βœ… Correct Answer: (C) 4.2 to 4.4

Q. "Break-even point" is the point of intersection of

  • (A) Fixed cost and total cost
  • (B) Total cost and sales revenue
  • (C) Fixed cost and sales revenue
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (B) Total cost and sales revenue

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