CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

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

Fixed charges

Plant overhead cost

General expenses

Direct production cost

TRUE ANSWER : ?
YOUR ANSWER : ?

Which of the following is not a component of the fixed capital for a chemical plant facility?

Process equipment

Emergency facilities

Raw materials inventory

Utilities plants

TRUE ANSWER : ?
YOUR ANSWER : ?

The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

One

Twelve

Six

Three

TRUE ANSWER : ?
YOUR ANSWER : ?

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

N0.4

N

N0.6

√n

TRUE ANSWER : ?
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

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

(P - S)/n

1 - (P/S)1/m

M/n x (P - S)

TRUE ANSWER : ?
YOUR ANSWER : ?

The payback method for the measurement of return on investment

Gives a correct picture of profitability

Takes into account the cash inflows after the recovery of investments

Does not measure the discounted rate of return

Underemphasises liquidity

TRUE ANSWER : ?
YOUR ANSWER : ?

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

Non-linearily

Logarithmically

Linearly

Exponentially

TRUE ANSWER : ?
YOUR ANSWER : ?

Manufacturing cost in a chemical company does not include the

Plant overheads

Direct products cost

Administrative expenses

Fixed charges

TRUE ANSWER : ?
YOUR ANSWER : ?

Which of the following is not a current asset of a chemical company?

Marketable securities

None of these

Inventories

Chemical equipments

TRUE ANSWER : ?
YOUR ANSWER : ?

Optimum economic pipe diameter for fluid is determined by the

None of these

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

Density of the fluid

Viscosity of the fluid

TRUE ANSWER : ?
YOUR ANSWER : ?

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