Chemical Engineering Plant Economics
Depreciation

All of these
Costs (on annual basis) are constant when the straight line method is used for its determination
Does figure in the calculation of income tax liability on cash flows from an investment
Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

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Chemical Engineering Plant Economics
Which of the following relationship is not correct is case of a chemical process plant?

Manufacturing cost = direct product cost + fixed charges + plant overhead costs
General expenses = administrative expenses + distribution & marketing expenses
Total product cost = manufacturing cost + general expenses
Total product cost = direct production cost + plant overhead cost

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Chemical Engineering Plant Economics
In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time
None of these
Annual cost of depreciation is same every year
Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

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