Chemical Engineering Plant Economics

Question: Personnel working in the market research group is reponsible for the job of
[A].

equipment selection.

[B].

product evaluation.

[C].

equipment design.

[D].

cost estimation.

Answer: Option B

Explanation:

No answer description available for this question.

Question: Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
[A].

water supply

[B].

running a control laboratory

[C].

property protection

[D].

medical services

Answer: Option A

Explanation:

No answer description available for this question.

Question: Fixed charges for a chemical plant does not include the
[A].

interest on borrowed money.

[B].

rent of land and buildings.

[C].

property tax, insurance and depreciation.

[D].

repair and maintenance charges.

Answer: Option D

Explanation:

No answer description available for this question.

Question: Operating profit of a chemical plant is equal to
[A].

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

[B].

profit after tax plus depreciation

[C].

net profit + tax

[D].

profit after tax

Answer: Option A

Explanation:

No answer description available for this question.

Question: Effluent treatment cost in a chemical plant is categorised as the __________ cost.
[A].

fixed

[B].

overhead

[C].

utilities

[D].

capital

Answer: Option C

Explanation:

No answer description available for this question.

Question: Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
[A].

1

[B].

5

[C].

10

[D].

30

Answer: Option C

Explanation:

No answer description available for this question.

Question: Functional depreciation of an equipment is the measure of decrease in its value due to its
[A].

ageing

[B].

wear and tear

[C].

obsolescence

[D].

breakdown or accident

Answer: Option C

Explanation:

No answer description available for this question.

Question: 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
[A].

manufacturing cost.

[B].

depreciation by sinking fund method.

[C].

discrete compound interest.

[D].

cash ratio.

Answer: Option B

Explanation:

No answer description available for this question.

Question: Nominal and effective interest rates are equal, when the interest is compounded
[A].

quarterly

[B].

semi-annually

[C].

annually

[D].

in no case, they are equal

Answer: Option C

Explanation:

No answer description available for this question.

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.