Related Questions
What is the correct answer?
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
What is the correct answer?
4
Pick out the wrong statement.
A. Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner's contribution i.e., debt-equity ratio = total debt/net worth
B. Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt)
C. Working capital = current assets + current liability
D. Turn over = opening stock + production closing stock
What is the correct answer?
4
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
B. Depreciation by sinking fund method
C. Discrete compound interest
What is the correct answer?
4
Which of the following relationship is not correct is case of a chemical process plant?
A. Manufacturing cost = direct product cost + fixed charges + plant overhead costs
B. General expenses = administrative expenses + distribution & marketing expenses
C. Total product cost = manufacturing cost + general expenses
D. Total product cost = direct production cost + plant overhead cost
What is the correct answer?
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.
What is the correct answer?
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?
What is the correct answer?
4
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
What is the correct answer?
4
Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
What is the correct answer?
4
Manufacturing cost in a chemical company does not include the
D. Administrative expenses
What is the correct answer?
4
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
B. Book value at the end of (n - 1)th year
C. Depreciation during the (n - 1)th year
D. Difference between initial cost and salvage value
What is the correct answer?
4
The value of a property decreases __________ with time in straight line method of determining depreciation.
What is the correct answer?
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
What is the correct answer?
4
Which of the following does not come under the sales expenses for a product of a chemical plant?
What is the correct answer?
4
Construction expenses are roughly __________ percent of the total direct cost of the plant.
What is the correct answer?
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
What is the correct answer?
4
Payback period
A. And economic life of a project are the same
B. Is the length of time over which the earnings on a project equals the investment
C. Is affected by the variation in earnings after the recovery of the investment
What is the correct answer?
4
A shareholder has __________ say in the affairs of company management compared to a debenture holder.
What is the correct answer?
4
'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
What is the correct answer?
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
What is the correct answer?
4
Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.
What is the correct answer?
4
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
C. Sum of the years digit
What is the correct answer?
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
What is the correct answer?
4
Which of the following is not a current asset of a chemical company?
What is the correct answer?
4
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)
What is the correct answer?
4
Gross earning is equal to the total income minus
What is the correct answer?
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)
What is the correct answer?
4
In declining balance method of depreciation calculation, the
A. Value of the asset decreases linearly with time
B. Annual cost of depreciation is same every year
C. Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
What is the correct answer?
4
'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.
What is the correct answer?
4
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
What is the correct answer?
4
'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
D. [2 (n - m + 1)/n(n + 1)]. (P - S)