Related Questions
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4
Pick out the wrong statement.
A. Gross margin = net income - net expenditure
B. Net sales realisation (NSR) = Gross sales - selling expenses
C. At breakeven point, NSR is more than the total production cost
D. Net profit = Gross margin - depreciation - interest
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4
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
A. Fabricated equipment and machinery
B. Process instruments and control
D. Electrical equipments and material
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4
Depreciation is __________ in profit with time.
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4
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?
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4
Which of the following does not come under the sales expenses for a product of a chemical plant?
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4
Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
B. Rate of return on investment
D. Discounted cash flow based on full life performance
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4
Out of the following, the depreciation calculated by the __________ method is the maximum.
C. Sum of the years digit
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4
Generally, income taxes are based on the
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4
Which of the following is not a component of depreciation cost?
A. Repairs and maintenance cost
B. Loss due to obsolescence of the equipment
C. Loss due to decrease in the demand of product
D. Loss due to accident/breakdown in the machinery
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4
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
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4
Functional depreciation of an equipment is the measure of decrease in its value due to its
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4
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.
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4
For a typical project, the cumulative cash flow is zero at the
A. End of the project life
D. End of the design stage
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4
Profit is equal to revenue minus
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4
__________ of depreciation calculation does not take into account the interest on investments.
C. Sum of the years-digits method
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4
__________ of depreciation calculation accounts for the interest on investment.
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4
Break-even point is the point of intersection of
A. Fixed cost and total cost
B. Total cost and sales revenue
C. Fixed cost and sales revenue
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4
Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
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4
The value of a property decreases __________ with time in straight line method of determining depreciation.
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4
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project
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4
Which of the following is a component of working capital investment?
B. Maintenance and repair inventory
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4
Fixed charges for a chemical plant does not include the
A. Interest on borrowed money
B. Rent of land and buildings
C. Property tax, insurance and depreciation
D. Repair and maintenance charges
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4
Pick out the wrong statement.
A. The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
D. In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
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4
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.
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4
Total product cost of a chemical plant does not include the __________ cost.
B. Operating labour, supervision and supplies
C. Overhead and utilities
D. Depreciation, property tax and insurance
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4
Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
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4
Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?
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4
In a chemical process plant, the total product cost comprises of manufacturing cost and the
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4
Optimum economic pipe diameter for fluid is determined by the
A. Viscosity of the fluid
C. Total cost considerations (pumping cost plus fixed cost of the pipe)
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4
Gross earning is equal to the total income minus