CHEMICAL ENGINEERING PLANT ECONOMICS QUIZ

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

60 to 70

40 to 50

20 to 30

5 to 10

TRUE ANSWER : ?
YOUR ANSWER : ?

'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

M/n x (P - S)

(P - S)/n

1 - (P/S)1/m

2(n - m + 1)/n(n + 1) x (P - S)

TRUE ANSWER : ?
YOUR ANSWER : ?

'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

10 to 20

25 to 35

35 to 45

1 to 5

TRUE ANSWER : ?
YOUR ANSWER : ?

A balance sheet for an industrial concern shows

Only fixed assets

The financial condition at any given time

Only current assets

Only current and fixed assets

TRUE ANSWER : ?
YOUR ANSWER : ?

Manufacturing cost in a chemical company does not include the

Administrative expenses

Direct products cost

Plant overheads

Fixed charges

TRUE ANSWER : ?
YOUR ANSWER : ?

Effective and nominal interest rates are equal, when the interest is compounded

Fortnightly

half-yearly

Monthly

Annually

TRUE ANSWER : ?
YOUR ANSWER : ?

In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time

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

Annual cost of depreciation is same every year

None of these

TRUE ANSWER : ?
YOUR ANSWER : ?

Which of the following is not a current asset of a chemical company?

Chemical equipments

Marketable securities

None of these

Inventories

TRUE ANSWER : ?
YOUR ANSWER : ?

Payback period

Is the length of time over which the earnings on a project equals the investment

And economic life of a project are the same

Is affected by the variation in earnings after the recovery of the investment

All of these

TRUE ANSWER : ?
YOUR ANSWER : ?

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

None of these

Straight line

Declining balance

Sum of the years digit

TRUE ANSWER : ?
YOUR ANSWER : ?