Chemical Engineering Plant Economics

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.

Question: In which of the electric power generation system, the operating cost is minimum ?
[A].

Thermal

[B].

Nuclear

[C].

Hydroelectric

[D].

Fast breeder reactor

Answer: Option C

Explanation:

No answer description available for this question.

Question: Optimum economic pipe diameter for fluid is determined by the
[A].

viscosity of the fluid.

[B].

density of the fluid.

[C].

total cost considerations (pumping cost plus fixed cost of the pipe).

[D].

none of these.

Answer: Option C

Explanation:

No answer description available for this question.

Question: For a given fluid, as the pipe diameter increases, the pumping cost
[A].

decreases.

[B].

increases.

[C].

remains the same.

[D].

may increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian.

Answer: Option A

Explanation:

No answer description available for this question.

Question: If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
[A].

10

[B].

20

[C].

>20

[D].

< 20

Answer: Option C

Explanation:

No answer description available for this question.