Chemical Engineering Plant Economics MCQs | Page - 4

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.

📊 Chemical Engineering Plant Economics
Q. The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
  • (A) Initial cost
  • (B) Book value at the end of (n - 1)th year
  • (C) Depreciation during the (n - 1)th year
  • (D) Difference between initial cost and salvage value
💬 Discuss
✅ Correct Answer: (B) Book value at the end of (n - 1)th year
📊 Chemical Engineering Plant Economics
Q. Which of the following is not a current asset of a chemical company?
  • (A) Inventories
  • (B) Marketable securities
  • (C) Chemical equipments
  • (D) None of these
💬 Discuss
✅ Correct Answer: (C) Chemical equipments
📊 Chemical Engineering Plant Economics
Q. In declining balance method of depreciation calculation, the
  • (A) Value of the asset decreases linearly with time
  • (B) Annual cost of depreciation is same every year
  • (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
  • (D) None of these
💬 Discuss
✅ Correct Answer: (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
📊 Chemical Engineering Plant Economics
Q. The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)
  • (A) P.i.n.
  • (B) P(1 + i.n)
  • (C) P(1 + i)n
  • (D) P(1 - i.n)
💬 Discuss
✅ Correct Answer: (A) P.i.n.
📊 Chemical Engineering Plant Economics
Q. 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
  • (A) Decreases
  • (B) Increases
  • (C) Increases linearly
  • (D) Remains constant
💬 Discuss
✅ Correct Answer: (A) Decreases
📊 Chemical Engineering Plant Economics
Q. Which of the following relationship is not correct is case of a chemical process plant?
  • (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs
  • (B) General expenses = administrative expenses + distribution & marketing expenses
  • (C) Total product cost = manufacturing cost + general expenses
  • (D) Total product cost = direct production cost + plant overhead cost
💬 Discuss
✅ Correct Answer: (D) Total product cost = direct production cost + plant overhead cost
📊 Chemical Engineering Plant Economics
Q. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
  • (A) Cash reserve
  • (B) Payout period
  • (C) Rate of return on investment
  • (D) Discounted cash flow based on full life performance
💬 Discuss
✅ Correct Answer: (A) Cash reserve

Jump to

Explore More Categories

Click on category to learn MCQs of that category.

📱 Download Our App

Learn MCQs on the go with our easy-to-use Android app

Get it on Google Play