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Plant-Economics Quiz 1


Plant-Economics Quiz 1

1 / 50

Fixed charges for a chemical plant does not include the______?

2 / 50

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with ? times the capacity of the first unit is approximately equal to ______ times the cost of the initial unit?

3 / 50

Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to__________?

4 / 50

Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

5 / 50

Nominal and effective interest rates are equal, when the interest is compounded_______?

6 / 50

In financial accounting of a chemical plant, which of the following relationship is invalid ?

7 / 50

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___________?

8 / 50

In a manufacturing industry, breakeven point occurs, when the_____?

9 / 50

Direct costs component of the fixed capital consists of _______?

10 / 50

A balance sheet for an industrial concern shows _____?

11 / 50

Cost of instrumentation in a modern chemical plant ranges from _______ percent of the total plant cost?

12 / 50

Factory manufacturing cost is the sum of the direct production cost__________?

13 / 50

A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs ?

14 / 50

Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about ______ percent of the fixed capital investment ?

15 / 50

?Six-tenth factor? rule is used for estimating the__________?

16 / 50

Depreciation is ______ in profit with time?

17 / 50

______ method for profitability evaluation of a project does not account for investment cost due to land ?

18 / 50

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs ______?

19 / 50

_________ of depreciation calculation does not take into account the interest on investments?

20 / 50

A shareholder has _______ say in the affairs of company management compared to a debenture holder ?

21 / 50

Effective and nominal interest rates are equal, when the interest is compounded___________?

22 / 50


23 / 50

Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost ? (index value at present/ index value at time original cost was obtained). The most major component of this cost index is______?

24 / 50

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_______?

25 / 50

__________ of depreciation calculation accounts for the interest on investment?

26 / 50

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 ?

27 / 50

Equipment installation cost in a chemical process plant ranges from ________ percent of the purchased equipment cost ?

28 / 50

An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the payback time ?

29 / 50

If an amount R is paid at the end of every year for ?n? years, then the net present value of the annuity at an interest rate of i is __________?

30 / 50

Construction expenses are roughly ______ percent of the total direct cost of the plant ?

31 / 50

A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as ___________?

32 / 50

In declining balance method of depreciation calculation, the _______?

33 / 50

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be _______ percent ?

34 / 50

In an ordinary chemical plant, electrical installation cost may be about ______?

35 / 50

If ?S? is the amount available after ?n? interest periods for an initial principal ?P? with the discrete compound interest rate ?i?, the present worth is given by___________?

36 / 50

Annual depreciation cost are not constant when, the ______ method of depreciation calculation is used ?

37 / 50

Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to _______ percent in case of seasonal products manufacturing plant?

38 / 50

?Lang factor? is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of ?Lang factor? for fixed capital investment, for a solid-fluid processing chemical plant ranges from ?

39 / 50

Annual depreciation costs are constant, when the _______ method of depreciation calculation is used ?

40 / 50

Manufacturing cost in a chemical company does not include the______?

41 / 50

In which of the electric power generation system, the operating cost is minimum ?

42 / 50

In a chemical process plant, the total product cost comprises of manufacturing cost and the___________?

43 / 50

An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be _________?

44 / 50

Gross earning is equal to the total income minus_____?

45 / 50

Functional depreciation of an equipment is the measure of decrease in its value due to its __________?

46 / 50

_____ taxes are based on gross earnings ?

47 / 50

Effluent treatment cost in a chemical plant is categorised as the ___________ cost?

48 / 50

?Break-even point? is the point of intersection of_______?

49 / 50

?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 year?s digit method will be______?

50 / 50

Generally, income taxes are based on the______?

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