Chemical Engineering Plant Economics

Question: In declining balance method of depreciation calculation, the
[A].

value of the asset decreases linearly with time.

[B].

annual cost of depreciation is same every year.

[C].

annual depreciation is the fixed percentage of the property value at the beginning of the particular year.

[D].

none of these.

Answer: Option C

Explanation:

No answer description available for this question.

Question: A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.
[A].

300

[B].

600

[C].

800

[D].

1000

Answer: Option C

Explanation:

No answer description available for this question.

Question: Depreciation is __________ in profit with time.
[A].

decrease

[B].

increase

[C].

no change

[D].

none of these

Answer: Option A

Explanation:

No answer description available for this question.

Question: A shareholder has __________ say in the affairs of company management compared to a debenture holder.
[A].

more

[B].

less

[C].

same

[D].

no

Answer: Option A

Explanation:

No answer description available for this question.

Question: “Break-even point” is the point of intersection of
[A].

fixed cost and total cost.

[B].

total cost and sales revenue.

[C].

fixed cost and sales revenue.

[D].

none of these.

Answer: Option B

Explanation:

No answer description available for this question.

Question: Gantt chart (or Bar chart) is helpful in
[A].

efficient utilisation of manpower and machines.

[B].

preparing production schedule.

[C].

efficient despatching of products.

[D].

inventory control.

Answer: Option B

Explanation:

No answer description available for this question.

Question: Factory manufacturing cost is the sum of the direct production cost
[A].

fixed charges and plant overhead cost.

[B].

and plant overhead cost.

[C].

plant overhead cost and administrative expenses.

[D].

none of these.

Answer: Option A

Explanation:

No answer description available for this question.

Question: Generally, income taxes are based on the
[A].

total income

[B].

gross earning

[C].

total product cost

[D].

fixed cost

Answer: Option B

Explanation:

No answer description available for this question.

Question: A balance sheet for an industrial concern shows
[A].

the financial condition at any given time.

[B].

only current assets.

[C].

only fixed assets.

[D].

only current and fixed assets.

Answer: Option A

Explanation:

No answer description available for this question.

Question: Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.
[A].

15000

[B].

16105

[C].

18105

[D].

12500

Answer: Option B

Explanation:

No answer description available for this question.