Home
Current Affairs January 2024

What is the correct answer?

4

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?

A. Electrical installation cost

B. Equipment installation cost

C. Cost for piping

D. Equipment insulation cost

Correct Answer :

D. Equipment insulation cost


Related Questions

What is the correct answer?

4

Profit is equal to revenue minus

A. Book value

B. Total cost

C. Operating cost

D. None of these

What is the correct answer?

4

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

A. Assets = equities

B. Assets = liabilities + net worth

C. Total income = costs + profits

D. Assets = capital

What is the correct answer?

4

Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method?

A. Multiple straight line method

B. Sinking fund method

C. Declining balance method

D. Sum of the years digit method

What is the correct answer?

4

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

A. Utilities plants

B. Maintenance and repair inventory

C. Process equipments

D. Depreciation

What is the correct answer?

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

What is the correct answer?

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)

What is the correct answer?

4

Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

A. Straight line

B. Sinking fund

C. Present worth

D. Declining balance

What is the correct answer?

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.

A. n

B. n0.6

C. n0.4

D. √n

What is the correct answer?

4

In a manufacturing industry, breakeven point occurs, when the

A. Total annual rate of production equals the assigned value

B. Total annual product cost equals the total annual sales

C. Annual profit equals the expected value

D. Annual sales equals the fixed cost

What is the correct answer?

4

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

A. Raw materials inventory

B. Utilities plants

C. Process equipment

D. Emergency facilities

What is the correct answer?

4

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

A. Fixed

B. Overhead

C. Utilities

D. Capital

What is the correct answer?

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

D. None of these

What is the correct answer?

4

A shareholder has __________ say in the affairs of company management compared to a debenture holder.

A. More

B. Less

C. Same

D. No

What is the correct answer?

4

Which of the following does not come under the sales expenses for a product of a chemical plant?

A. Advertising

B. Warehousing

C. Legal fees

D. Customer service

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

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)

What is the correct answer?

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

What is the correct answer?

4

Depreciation is __________ in profit with time.

A. Decrease

B. Increase

C. No change

D. None of these

What is the correct answer?

4

Gantt chart (or Bar chart) is helpful in

A. Efficient utilisation of manpower and machines

B. Preparing production schedule

C. Efficient despatching of products

D. Inventory control

What is the correct answer?

4

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

A. 10 to 20

B. 35 to 45

C. 55 to 65

D. 70 to 80

What is the correct answer?

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

What is the correct answer?

4

The economic life of a large chemical process plant as compared to a small chemical plant is

A. Only slightly more

B. Much more

C. Slightly less

D. Almost equal

What is the correct answer?

4

Construction expenses are roughly __________ percent of the total direct cost of the plant.

A. 2

B. 10

C. 30

D. 50

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.

A. 15

B. 35

C. 55

D. 75

What is the correct answer?

4

Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

A. Water supply

B. Running a control laboratory

C. Property protection

D. Medical services

What is the correct answer?

4

Effective and nominal interest rates are equal, when the interest is compounded

A. Annually

B. Fortnightly

C. Monthly

D. Half-yearly

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

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

What is the correct answer?

4

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

A. 1000 (1 + 0.1/4)20

B. 1000 (1 + 0.1)20

C. 1000 (1 + 0.1/4)5

D. 1000 (1 + 0.1/2)5

What is the correct answer?

4

Operating profit of a chemical plant is equal to

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

B. Profit after tax plus depreciation

C. Net profit + tax

D. Profit after tax

What is the correct answer?

4

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

A. End of the project life

B. Breakeven point

C. Start up

D. End of the design stage

What is the correct answer?

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