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Chemical Engineering Plant Economics

Chemical Engineering Plant Economics
Functional depreciation of an equipment is the measure of decrease in its value due to its

Wear and tear
Ageing
Breakdown or accident
Obsolescence

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Chemical Engineering Plant Economics
A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

Current asset
Profit
Long term debt
Current liability

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Chemical Engineering Plant Economics
Operating profit of a chemical plant is equal to

Profit after tax
Profit after tax plus depreciation
Profit before interest and tax i.e., net profit + interest + tax
Net profit + tax

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Chemical Engineering Plant Economics
Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost
And plant overhead cost
Plant overhead cost and administrative expenses
None of these

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Chemical Engineering Plant Economics
Break-even point is the point of intersection of

Fixed cost and total cost
Total cost and sales revenue
None of these
Fixed cost and sales revenue

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Chemical Engineering Plant Economics
The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

Liquids assets
Cash ratio
Current ratio
Net working capital

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