What is the correct answer?

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

C. Obsolescence

### Related Questions

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4

# Profit is equal to revenue minus

Book value

Total cost

Operating cost

None of these

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

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

What is the correct answer?

4

# The value of a property decreases __________ with time in straight line method of determining depreciation.

Linearly

Non-linearly

Exponentially

Logarithmically

What is the correct answer?

4

# Manufacturing cost in a chemical company does not include the

Fixed charges

Direct products cost

What is the correct answer?

4

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

Equipment selection

Product evaluation

Equipment design

Cost estimation

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.

n

n0.6

n0.4

√n

What is the correct answer?

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

What is the correct answer?

4

# Scheduling provides information about the

Proper utilisation of machines

Means to minimise idle time for machines

Time of completion of job

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

What is the correct answer?

4

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

10 to 20

20 to 40

45 to 60

65 to 75

What is the correct answer?

4

# Pick out the wrong statement.

Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)

Return on equity = profit after tax/net worth

Working capital turnover ratio = sales/net working capital

Total cost of production is more than net sales realisation (NSR) at breakeven point

What is the correct answer?

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

15%

10%

1.5%

150%

What is the correct answer?

4

# Fixed charges for a chemical plant does not include the

Interest on borrowed money

Rent of land and buildings

Property tax, insurance and depreciation

Repair and maintenance charges

What is the correct answer?

4

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

Competition from other manufactures

Product distribution

Opportunities

Economics

What is the correct answer?

4

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

Water supply

Running a control laboratory

Property protection

Medical services

What is the correct answer?

4

# Generally, income taxes are based on the

Total income

Gross earning

Total product cost

Fixed cost

What is the correct answer?

4

# Utilities cost in the operation of chemical process plant comes under the

Fixed charges

Direct production cost

General expenses

What is the correct answer?

4

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

Straight line

Sinking fund

Present worth

Declining balance

What is the correct answer?

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

What is the correct answer?

4

# A balance sheet for an industrial concern shows

The financial condition at any given time

Only current assets

Only fixed assets

Only current and fixed assets

What is the correct answer?

4

# Pick out the wrong statement.

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

Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt)

Working capital = current assets + current liability

Turn over = opening stock + production closing stock

What is the correct answer?

4

# Direct costs component of the fixed capital consists of

Contingencies

Onsite and offsite costs

Labour costs

Raw material costs

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.

One

Three

Six

Twelve

What is the correct answer?

4

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

More

Less

Same

No

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

0.1

0.6

0.2

0.8

What is the correct answer?

4

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

Product inventory

In-process inventory

Minimum cash reserve

Storage facilities

What is the correct answer?

4

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

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

p(1 + i)n

p(1 - i)n

p(1 + in)

What is the correct answer?

4

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

Assets = equities

Assets = liabilities + net worth

Total income = costs + profits

Assets = capital

What is the correct answer?

4

# In an ordinary chemical plant, electrical installation cost may be about

10-15% of purchased equipment cost

3-10% of fixed capital investment

Either (A) or (B)

Neither (A) nor (B)

What is the correct answer?

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

What is the correct answer?

4

Decrease

Increase

No change

None of these