Related Questions
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4
Which of the following elements is not included in the scope of market analysis?
A. Competition from other manufactures
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4
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
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4
Functional depreciation of an equipment is the measure of decrease in its value due to its
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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
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4
Which of the following does not come under the sales expenses for a product of a chemical plant?
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4
Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.
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4
'Six-tenth factor' rule is used for estimating the
A. Equipment installation cost
B. Equipment cost by scaling
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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)
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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
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4
The ratio of working capital to total capital investment for most chemical plants (except for nonseasonal based products) is in the range of __________ percent.
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4
Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
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4
__________ of depreciation calculation accounts for the interest on investment.
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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
D. Equipment insulation cost
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4
The payback method for the measurement of return on investment
A. Gives a correct picture of profitability
B. Underemphasises liquidity
C. Does not measure the discounted rate of return
D. Takes into account the cash inflows after the recovery of investments
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4
Gross earning is equal to the total income minus
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4
Which of the following is a component of working capital investment?
B. Maintenance and repair inventory
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4
Profit is equal to revenue minus
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4
Which of the following is not a component of the working capital for a chemical process plant?
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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
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4
Construction expenses are roughly __________ percent of the total direct cost of the plant.
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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
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4
__________ of depreciation calculation does not take into account the interest on investments.
C. Sum of the years-digits method
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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?
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4
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
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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
C. Declining balance method
D. Sum of the years digit method
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4
Fixed charges for a chemical plant does not include the
A. Interest on borrowed money
B. Rent of land and buildings
C. Property tax, insurance and depreciation
D. Repair and maintenance charges
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4
Optimum economic pipe diameter for fluid is determined by the
A. Viscosity of the fluid
C. Total cost considerations (pumping cost plus fixed cost of the pipe)
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4
Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.
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4
Pick out the wrong statement.
A. Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
B. A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
C. Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
D. Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
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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