Diminishing balance

Straight line

Sum of the years digit

Sinking fund

A. Diminishing balance

Property

Excise

Income

Capital gain

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

Only slightly more

Much more

Slightly less

Almost equal

2

10

30

50

0.1 to 1

1 to 2

10 to 20

50 to 60

1

5

10

30

Cash reserve

Rate of return on investment

Payout period

Discounted cash flow based on full life performance

Viscosity of the fluid

Density of the fluid

Total cost considerations (pumping cost plus fixed cost of the pipe)

None of these

Decreases

Increases

Remains the same

May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian

10

20

> 20

< 20

121

110

97

91

Declining balance

Straight line

Sum of the years digit

None of these

Low alloy steel

Lead

Titanium

High alloy steel

Current asset

Current liability

Long term debt

Profit

General expenses

Overhead cost

R & D cost

None of these

Overhead cost

Fixed expenses

General expenses

Direct production cost

5 years

7 years

12 years

10 years

Profit before interest and tax i.e., net profit + interest + tax

Profit after tax plus depreciation

Net profit + tax

Profit after tax

Assets = equities

Assets = liabilities + net worth

Total income = costs + profits

Assets = capital

Quarterly

Semi-annually

Annually

In no case, they are equal

(P - S)/n

^{1/m}

(m/n) (P - S)

[2 (n - m + 1)/n(n + 1)]. (P - S)

Diminishing balance

Straight line

Sum of the years digit

Sinking fund

p.i.n.

p(1 + i.n)

p(1 + i)n

p(1 - i.n)

Electrical installation cost

Equipment installation cost

Cost for piping

Equipment insulation cost

Perpetuity

Capital charge factor

Annuity

Future worth

One

Three

Six

Twelve

The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment

Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost

Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment

In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Utilities plants

Maintenance and repair inventory

Process equipments

Depreciation

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

10-15% of purchased equipment cost

3-10% of fixed capital investment

Either (A) or (B)

Neither (A) nor (B)