CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Property tax, insurance and depreciation

Rent of land and buildings

Interest on borrowed money

Repair and maintenance charges

Capital

Investment

Turnover

Cash reserve

General expenses = administrative expenses + distribution & marketing expenses

Total product cost = manufacturing cost + general expenses

Total product cost = direct production cost + plant overhead cost

Manufacturing cost = direct product cost + fixed charges + plant overhead costs

Twelve

Three

Six

One

Annual cost of depreciation is same every year

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

Much more

Almost equal

Slightly less

Only slightly more

Operating cost

None of these

Book value

Total cost

Storage facilities

Product inventory

In-process inventory

Minimum cash reserve

Repairs and maintenance cost

Loss due to obsolescence of the equipment

Loss due to decrease in the demand of product

Loss due to accident/breakdown in the machinery

Preparing production schedule

Inventory control

Efficient utilisation of manpower and machines

Efficient despatching of products