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

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

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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

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

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Chemical Engineering Plant Economics
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Book value at the end of (n - 1)th year
Depreciation during the (n - 1)th year
Difference between initial cost and salvage value
Initial cost

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