4

In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time

Annual cost of depreciation is same every year

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

None of these

C. Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

4

Cash reserve

Capital

Turnover

Investment

4

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

Equipment installation cost

Equipment cost by scaling

Cost of piping

Utilities cost

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

4

General expenses

R & D cost

None of these

4

15

35

55

75

4

Property

Excise

Income

Capital gain

4

Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost

None of these

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

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

Straight line

Sinking fund

Present worth

Declining balance

4

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

Thermal

Nuclear

Hydroelectric

Fast breeder reactor

4

Total product cost of a chemical plant does not include the __________ cost.

Market survey

Operating labour, supervision and supplies

Depreciation, property tax and insurance

4

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

p(1 + i)n

p(1 - i)n

p(1 + in)

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

Book value

Total cost

Operating cost

None of these

4

Depreciation

Costs (on annual basis) are constant when the straight line method is used for its determination

Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

Does figure in the calculation of income tax liability on cash flows from an investment

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

4

__________ of depreciation calculation accounts for the interest on investment.

Straight line method

Declining balance

Both (A) and (B)

Neither (A) nor (B)

4

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

Declining balance

Straight line

Sum of the years digit

None of these

4

1 to 5

10 to 20

25 to 35

35 to 45

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

121

110

97

91

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

4

Fixed

Utilities

Capital

4

2

10

30

50

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

1000 (1 + 0.1/4)20

1000 (1 + 0.1)20

1000 (1 + 0.1/4)5

1000 (1 + 0.1/2)5

4

Which of the following relationship is not correct is case of a chemical process plant?

Manufacturing cost = direct product cost + fixed charges + plant overhead costs

General expenses = administrative expenses + distribution & marketing expenses

Total product cost = manufacturing cost + general expenses

Total product cost = direct production cost + plant overhead cost

4

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

Utilities plants

Maintenance and repair inventory

Process equipments

Depreciation

4

Gross earning is equal to the total income minus

Total product cost

Fixed cost

Income tax

None of these

4

Which of the following is not a current asset of a chemical company?

Inventories

Marketable securities

Chemical equipments

None of these

4

Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

1

5

10

30

4

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