August 2022

Question: 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 ?
[A].

Electrical installation cost.

[B].

Equipment installation cost.

[C].

Cost for piping.

[D].

Equipment insulation cost.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
[A].

0.1

[B].

0.6

[C].

0.2

[D].

0.8

Answer: Option B

Explanation:

No answer description available for this question.

Question: In an ordinary chemical plant, electrical installation cost may be about
[A].

10-15% of purchased equipment cost.

[B].

3-10% of fixed capital investment.

[C].

either (a) or (b).

[D].

neither (a) nor (b).

Answer: Option C

Explanation:

No answer description available for this question.

Question: ‘Six-tenth factor’ rule is used for estimating the
[A].

equipment installation cost.

[B].

equipment cost by scaling.

[C].

cost of piping.

[D].

utilities cost.

Answer: Option B

Explanation:

No answer description available for this question.

Question: Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.
[A].

30

[B].

50

[C].

75

[D].

95

Answer: Option B

Explanation:

No answer description available for this question.

Question: Manufacturing cost in a chemical company does not include the
[A].

fixed charges.

[B].

plant overheads.

[C].

direct products cost.

[D].

administrative expenses.

Answer: Option D

Explanation:

No answer description available for this question.

Question: A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.
[A].

current asset

[B].

current liability

[C].

long term debt

[D].

profit

Answer: Option D

Explanation:

No answer description available for this question.

Question: In financial accounting of a chemical plant, which of the following relationship is invalid?
[A].

Assets = equities

[B].

Assets = liabilities + net worth

[C].

Total income = costs + profits

[D].

Assets = capital.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Out of the following, the depreciation calculated by the __________ method is the maximum.
[A].

diminishing balance

[B].

straight line

[C].

sum of the years digit

[D].

sinking fund

Answer: Option A

Explanation:

No answer description available for this question.