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Plant-Economics Quiz 1


Plant-Economics Quiz 1

1 / 50

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

2 / 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___________?

3 / 50

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

4 / 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 ?

5 / 50

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

6 / 50

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

7 / 50

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

8 / 50

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

9 / 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__________?

10 / 50

Gross earning is equal to the total income minus_____?

11 / 50

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

12 / 50

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

13 / 50

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

14 / 50

Manufacturing cost in a chemical company does not include the______?

15 / 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______?

16 / 50

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

17 / 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 ?

18 / 50

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

19 / 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 _________?

20 / 50

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

21 / 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 ?

22 / 50

A balance sheet for an industrial concern shows _____?

23 / 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?

24 / 50

Fixed charges for a chemical plant does not include the______?

25 / 50

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

26 / 50

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

27 / 50


28 / 50

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

29 / 50

In declining balance method of depreciation calculation, the _______?

30 / 50

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

31 / 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 __________?

32 / 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______?

33 / 50

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

34 / 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_______?

35 / 50

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

36 / 50

Depreciation is ______ in profit with time?

37 / 50

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

38 / 50

Generally, income taxes are based on the______?

39 / 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 ?

40 / 50

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

41 / 50

__________ of depreciation calculation accounts for the interest on investment?

42 / 50

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

43 / 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?

44 / 50

_____ taxes are based on gross earnings ?

45 / 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___________?

46 / 50

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

47 / 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 ?

48 / 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 ______?

49 / 50

Direct costs component of the fixed capital consists of _______?

50 / 50

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

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