Chemical Engineering Plant Economics
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

Manufacturing cost
Discrete compound interest
Cash ratio
Depreciation by sinking fund method

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Chemical Engineering Plant Economics
In a manufacturing industry, break even point occurs, when the

Annual sales equals the fixed cost
Total annual product cost equals the total annual sales
Annual profit equals the expected value
Total annual rate of production equals the assigned value

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Chemical Engineering Plant Economics
Which of the following relationship is not correct is case of a chemical process plant?

General expenses = administrative expenses + distribution & marketing expenses
Total product cost = manufacturing cost + general expenses
Manufacturing cost = direct product cost + fixed charges + plant overhead costs
Total product cost = direct production cost + plant overhead cost

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