CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Profit is equal to revenue minus

None of these

Book value

Total cost

Operating cost

TRUE ANSWER : ?
YOUR ANSWER : ?

Operating profit of a chemical plant is equal to

Profit after tax plus depreciation

Net profit + tax

Profit after tax

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

TRUE ANSWER : ?
YOUR ANSWER : ?

The amount of compounded interest during 'n' interest periods is

P(1 + i)n

P(1 + in)

P(1 - i)n

P[(1+i)n-1)]

TRUE ANSWER : ?
YOUR ANSWER : ?

Manufacturing cost in a chemical company does not include the

Administrative expenses

Fixed charges

Plant overheads

Direct products cost

TRUE ANSWER : ?
YOUR ANSWER : ?

Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Medical services

Running a control laboratory

Water supply

Property protection

TRUE ANSWER : ?
YOUR ANSWER : ?

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

Manufacturing cost

Discrete compound interest

Depreciation by sinking fund method

Cash ratio

TRUE ANSWER : ?
YOUR ANSWER : ?

Fixed charges for a chemical plant does not include the

Property tax, insurance and depreciation

Repair and maintenance charges

Interest on borrowed money

Rent of land and buildings

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

(P - S)/n

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

1 - (P/S)1/m

M/n x (P - S)

TRUE ANSWER : ?
YOUR ANSWER : ?

'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

4.2 to 4.4

2.5 to 2.7

6.2 to 6.4

1.2 to 1.4

TRUE ANSWER : ?
YOUR ANSWER : ?

Optimum number of effects in a multiple effect evaporator is decided by the

Evaporation capacity required

Floor area availability

Cost benefit analysis

Terminal parameters

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