CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Optimum economic pipe diameter for fluid is determined by the

None of these

Density of the fluid

Viscosity of the fluid

Total cost considerations (pumping cost plus fixed cost of the pipe)

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YOUR ANSWER : ?

'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 years digit method will be

(P - S)/n

1 - (P/S)1/m

2(n - m + 1)/n(n + 1) x (P - S)

M/n x (P - S)

TRUE ANSWER : ?
YOUR ANSWER : ?

Operating profit of a chemical plant is equal to

Net profit + tax

Profit after tax plus depreciation

Profit before interest and tax i.e., net profit + interest + tax

Profit after tax

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Personnel working in the market research group is reponsible for the job of

Equipment design

Cost estimation

Product evaluation

Equipment selection

TRUE ANSWER : ?
YOUR ANSWER : ?

Profit is equal to revenue minus

Book value

None of these

Total cost

Operating cost

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The value of a property decreases __________ with time in straight line method of determining depreciation.

Non-linearily

Exponentially

Logarithmically

Linearly

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YOUR ANSWER : ?

Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

Electrical installation cost

Equipment insulation cost

Cost for piping

Equipment installation cost

TRUE ANSWER : ?
YOUR ANSWER : ?

In declining balance method of depreciation calculation, the

None of these

Value of the asset decreases linearly with time

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

Annual cost of depreciation is same every year

TRUE ANSWER : ?
YOUR ANSWER : ?

Which of the following elements is not included in the scope of market analysis?

Opportunities

Competition from other manufactures

Product distribution

Economics

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Utilities cost in the operation of chemical process plant comes under the

Direct production cost

Plant overhead cost

Fixed charges

General expenses

TRUE ANSWER : ?
YOUR ANSWER : ?