August 2022

Question: Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost   x The most major component of this cost index is
[A].

fabricated equipment and machinery.

[B].

process instruments and control.

[C].

pumps and compressor.

[D].

electrical equipments and material.

Answer: Option A

Explanation:

No answer description available for this question.

Question: __________ of depreciation calculation accounts for the interest on investement.
[A].

Straight line method

[B].

Declining balance

[C].

both (a) and (b)

[D].

neither (a) nor (b).

Answer: Option D

Explanation:

No answer description available for this question.

Question: __________ method for profitability evaluation of a project does not account for investment cost due to land.
[A].

Net present worth

[B].

Pay out period

[C].

Discounted cash flow

[D].

Rate of return on investment

Answer: Option B

Explanation:

No answer description available for this question.

Question: Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
[A].

straight line

[B].

sinking fund

[C].

present worth

[D].

declining balance.

Answer: Option D

Explanation:

No answer description available for this question.

Question: __________ of depreciation calculation does not take into account the interest on investments.
[A].

Present worth method

[B].

Sinking fund method

[C].

Sum of the years-digits method

[D].

all (a), (b) and (c)

Answer: Option C

Explanation:

No answer description available for this question.

Question: __________ taxes are based on gross earnings.
[A].

Property

[B].

Excise

[C].

Income

[D].

Capital gain

Answer: Option C

Explanation:

No answer description available for this question.

Question: Which of the following relationship is not correct is case of a chemical process plant ?
[A].

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

[B].

General expenses = administrative expenses + distribution & marketing expenses

[C].

Total product cost = manufacturing cost + general expenses

[D].

Total product cost = direct production cost + plant overhead cost.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Construction expenses are roughly __________ percent of the total direct cost of the plant.
[A].

2

[B].

10

[C].

30

[D].

50

Answer: Option B

Explanation:

No answer description available for this question.