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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and total cost
Total cost and sales revenue
Fixed cost and sales revenue
None of these

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Chemical Engineering Plant Economics
The payback method for the measurement of return on investment

Does not measure the discounted rate of return
Gives a correct picture of profitability
Takes into account the cash inflows after the recovery of investments
Underemphasises liquidity

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Chemical Engineering Plant Economics
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Water supply
Property protection
Medical services
Running a control laboratory

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Chemical Engineering Plant Economics
'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

6.2 to 6.4
1.2 to 1.4
4.2 to 4.4
2.5 to 2.7

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Chemical Engineering Plant Economics
In financial accounting of a chemical plant, which of the following relationship is invalid?

Assets = capital
Assets = equities
Total income = costs + profits
Assets = liabilities + net worth

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Chemical Engineering Plant Economics
The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

Cash reserve
Capital
Investment
Turnover

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MORE MCQ ON Chemical Engineering Plant Economics

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