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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

C. Pumps and compressor

D. Electrical equipments and material

Correct Answer :

A. Fabricated equipment and machinery


Related Questions

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Manufacturing cost in a chemical company does not include the

A. Fixed charges

B. Plant overheads

C. Direct products cost

D. Administrative expenses

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

A. 10

B. 20

C. > 20

D. < 20

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4

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

A. 4

B. 13

C. 22

D. 34

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4

Total product cost of a chemical plant does not include the __________ cost.

A. Market survey

B. Operating labour, supervision and supplies

C. Overhead and utilities

D. Depreciation, property tax and insurance

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4

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

A. Perpetuity

B. Capital charge factor

C. Annuity

D. Future worth

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4

Nominal and effective interest rates are equal, when the interest is compounded

A. Quarterly

B. Semi-annually

C. Annually

D. In no case, they are equal

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4

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

A. 15%

B. 10%

C. 1.5%

D. 150%

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4

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

A. Overhead cost

B. Working capital

C. Indirect production cost

D. Direct production cost

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4

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

A. General expenses

B. Overhead cost

C. R & D cost

D. None of these

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4

Effluent treatment cost in a chemical plant is categorised as the __________ cost.

A. Fixed

B. Overhead

C. Utilities

D. Capital

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4

Depreciation is __________ in profit with time.

A. Decrease

B. Increase

C. No change

D. None of these

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4

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A. Net present worth

B. Pay out period

C. Discounted cash flow

D. Rate of return on investment

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4

Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogenous fertiliser?

A. Coal gasification

B. Steam reforming of naphtha

C. Electrolysis of water

D. Coke oven gas

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4

A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

A. Current asset

B. Current liability

C. Long term debt

D. Profit

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4

For a given fluid, as the pipe diameter increases, the pumping cost

A. Decreases

B. Increases

C. Remains the same

D. May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian

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4

Profit is equal to revenue minus

A. Book value

B. Total cost

C. Operating cost

D. None of these

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Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

A. Cash reserve

B. Rate of return on investment

C. Payout period

D. Discounted cash flow based on full life performance

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4

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.

A. 30

B. 50

C. 75

D. 95

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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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Which of the following is a component of working capital investment?

A. Utilities plants

B. Maintenance and repair inventory

C. Process equipments

D. Depreciation

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'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

A. (P - S)/n

B. 1 - (P/S)1/m

C. (m/n) (P - S)

D. [2 (n - m + 1)/n(n + 1)]. (P - S)

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4

The amount of compounded interest during 'n' interest periods is

A. p[(1+i)n - 1)]

B. p(1 + i)n

C. p(1 - i)n

D. p(1 + in)

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4

Scheduling provides information about the

A. Proper utilisation of machines

B. Means to minimise idle time for machines

C. Time of completion of job

D. Time of starting of job and also about how much work should be completed during a particular period

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4

Which of the following is not a component of the working capital for a chemical process plant?

A. Product inventory

B. In-process inventory

C. Minimum cash reserve

D. Storage facilities

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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

__________ taxes are based on gross earnings.

A. Property

B. Excise

C. Income

D. Capital gain

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4

Optimum number of effects in a multiple effect evaporator is decided by the

A. Cost benefit analysis

B. Floor area availability

C. Terminal parameters

D. Evaporation capacity required

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4

Factory manufacturing cost is the sum of the direct production cost

A. Fixed charges and plant overhead cost

B. And plant overhead cost

C. Plant overhead cost and administrative expenses

D. None of these

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4

Personnel working in the market research group is responsible for the job of

A. Equipment selection

B. Product evaluation

C. Equipment design

D. Cost estimation

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Direct costs component of the fixed capital consists of

A. Contingencies

B. Onsite and offsite costs

C. Labour costs

D. Raw material costs