Home

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

Correct Answer :

D. Administrative expenses


Related Questions

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

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

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

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

Pick out the correct statement.

A. Difference between income and expense is termed as gross revenue

B. Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date

C. Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment

D. Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

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

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

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

__________ 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

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

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

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

Pick out the wrong statement.

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

B. Return on equity = profit after tax/net worth

C. Working capital turnover ratio = sales/net working capital

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

What is the correct answer?

4

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

A. Plant overhead cost

B. Fixed charges

C. Direct production cost

D. General expenses

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

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

A. 10

B. 20

C. > 20

D. < 20

What is the correct answer?

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.

A. 0.1 to 1

B. 1 to 2

C. 10 to 20

D. 50 to 60

What is the correct answer?

4

Depreciation

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

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

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

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

What is the correct answer?

4

Out of the following, the depreciation calculated by the __________ method is the maximum.

A. Diminishing balance

B. Straight line

C. Sum of the years digit

D. Sinking fund

What is the correct answer?

4

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

A. 1

B. 5

C. 10

D. 30

What is the correct answer?

4

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

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

B. General expenses = administrative expenses + distribution & marketing expenses

C. Total product cost = manufacturing cost + general expenses

D. Total product cost = direct production cost + plant overhead cost

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 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

A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

A. 121

B. 110

C. 97

D. 91

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

Optimum number of effects in a multiple effect evaporator is decided by the

A. Cost benefit analysis

B. Floor area availability

C. Terminal parameters

D. Evaporation capacity required

What is the correct answer?

4

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

A. Equipment selection

B. Product evaluation

C. Equipment design

D. Cost estimation

What is the correct answer?

4

Pick out the wrong statement.

A. Gross revenue is that total amount of capital received as a result of the sale of goods or service

B. Net revenue is the total profit remaining after deducting all costs excluding taxes

C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio

D. 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

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

A. Declining balance

B. Straight line

C. Sum of the years digit

D. None of these