4

Decrease

Increase

No change

None of these

A. Decrease

4

40,096

43,196

53,196

60,196

4

# 'Six-tenth factor' rule is used for estimating the

Equipment installation cost

Equipment cost by scaling

Cost of piping

Utilities cost

4

# __________ of depreciation calculation does not take into account the interest on investments.

Present worth method

Sinking fund method

Sum of the years-digits method

All (A), (B) and (C)

4

# Operating profit of a chemical plant is equal to

Profit before interest and tax i.e., net profit + interest + tax

Profit after tax plus depreciation

Net profit + tax

Profit after tax

4

2

10

30

50

4

(1 + i)n/S

S/(1 + i)n

S/(1 + in)

S/(1 + n)i

4

10

20

> 20

< 20

4

4

13

22

34

4

# The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Initial cost

Book value at the end of (n - 1)th year

Depreciation during the (n - 1)th year

Difference between initial cost and salvage value

4

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

Working capital

Indirect production cost

Direct production cost

4

# Pick out the wrong statement.

Gross margin = net income - net expenditure

Net sales realisation (NSR) = Gross sales - selling expenses

At breakeven point, NSR is more than the total production cost

Net profit = Gross margin - depreciation - interest

4

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

Current asset

Current liability

Long term debt

Profit

4

# 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

R [{(1 + i)n - 1}/ i ]

R [{(1 + i)n - 1}/ i (1 + i)n]

R(1 + i)n

R/(1 + i)n

4

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

Utilities plants

Maintenance and repair inventory

Process equipments

Depreciation

4

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

p(1 + i)n

p(1 - i)n

p(1 + in)

4

# In a manufacturing industry, breakeven point occurs, when the

Total annual rate of production equals the assigned value

Total annual product cost equals the total annual sales

Annual profit equals the expected value

Annual sales equals the fixed cost

4

# Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost

None of these

4

n

n0.6

n0.4

√n

4

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

Equipment selection

Product evaluation

Equipment design

Cost estimation

4

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

Ageing

Wear and tear

Obsolescence

Breakdown or accident

4

# For a typical project, the cumulative cash flow is zero at the

End of the project life

Breakeven point

Start up

End of the design stage

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

(P - S)/n

1 - (P/S)1/m

(m/n) (P - S)

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

4

15000

16105

18105

12500

4

# Which of the following is not a component of the fixed capital for a chemical plant facility?

Raw materials inventory

Utilities plants

Process equipment

Emergency facilities

4

# The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

Cash ratio

Net working capital

Current ratio

Liquids assets

4

Cash reserve

Capital

Turnover

Investment

4

# Pick out the wrong statement.

Gross revenue is that total amount of capital received as a result of the sale of goods or service

Net revenue is the total profit remaining after deducting all costs excluding taxes

The ratio of immediately available cash to the total current liabilities is known as the cash ratio

Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

4

# Generally, income taxes are based on the

Total income

Gross earning

Total product cost

Fixed cost

4

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

Coal gasification

Steam reforming of naphtha

Electrolysis of water

Coke oven gas