Home
Current Affairs January 2024

What is the correct answer?

4

Following the six-tenth factor rule, if a loglog plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

A. 0.1

B. 0.6

C. 0.2

D. 0.8

Correct Answer :

B. 0.6


Related Questions

What is the correct answer?

4

Which of the following elements is not included in the scope of market analysis?

A. Competition from other manufactures

B. Product distribution

C. Opportunities

D. Economics

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

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

A. 5 to 10

B. 20 to 30

C. 40 to 50

D. 60 to 70

What is the correct answer?

4

__________ of depreciation calculation accounts for the interest on investment.

A. Straight line method

B. Declining balance

C. Both (A) and (B)

D. Neither (A) nor (B)

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

A. Decreases

B. Increases

C. Increases linearly

D. Remain constant

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 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

What is the correct answer?

4

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

A. Ageing

B. Wear and tear

C. Obsolescence

D. Breakdown or accident

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?

A. 5 years

B. 7 years

C. 12 years

D. 10 years

What is the correct answer?

4

Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

A. 10 to 20

B. 20 to 40

C. 45 to 60

D. 65 to 75

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

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

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

In which of the electric power generation system, the operating cost is minimum?

A. Thermal

B. Nuclear

C. Hydroelectric

D. Fast breeder reactor

What is the correct answer?

4

A balance sheet for an industrial concern shows

A. The financial condition at any given time

B. Only current assets

C. Only fixed assets

D. Only current and fixed assets

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 is not a component of working capital?

A. Raw materials is stock

B. Finished products in stock

C. Transportation facilities

D. Semi-finished products in the process

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

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

Gross earning is equal to the total income minus

A. Total product cost

B. Fixed cost

C. Income tax

D. None of these

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

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

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

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

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

A. 300

B. 600

C. 800

D. 1000

What is the correct answer?

4

Which of the following is the costliest material of construction used in pressure vessel construction?

A. Low alloy steel

B. Lead

C. Titanium

D. High alloy steel

What is the correct answer?

4

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

A. 40,096

B. 43,196

C. 53,196

D. 60,196

What is the correct answer?

4

Manufacturing cost in a chemical company does not include the

A. Fixed charges

B. Plant overheads

C. Direct products cost

D. Administrative expenses

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

Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

A. Stainless steel

B. Plain carbon steel

C. Nickel

D. Copper