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Chemical Engineering Plant Economics MCQs | Page - 1

Dear candidates you will find MCQ questions of Chemical Engineering Plant Economics here. Learn these questions and prepare yourself for coming examinations and interviews. You can check the right answer of any question by clicking on any option or by clicking view answer button.

Q. 1) 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
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Q. 2) _______ taxes are based on gross earnings.

(A) Property
(B) Excise
(C) Income
(D) Capital gain
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Q. 3) _____ 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)
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Q. 4) _____ 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)
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Q. 5) _______ 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
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Q. 6) '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
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Q. 7) '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
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Q. 8) '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 year‟s 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)
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Q. 9) '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
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Q. 10) "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
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