Home
Current Affairs January 2024

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

Correct Answer :

C. At breakeven point, NSR is more than the total production cost


Related Questions

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.

A. n

B. n0.6

C. n0.4

D. √n

What is the correct answer?

4

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

A. Market survey

B. Operating labour, supervision and supplies

C. Overhead and utilities

D. Depreciation, property tax and insurance

What is the correct answer?

4

Which of the following is not a component of depreciation cost?

A. Repairs and maintenance cost

B. Loss due to obsolescence of the equipment

C. Loss due to decrease in the demand of product

D. Loss due to accident/breakdown in the machinery

What is the correct answer?

4

__________ of depreciation calculation does not take into account the interest on investments.

A. Present worth method

B. Sinking fund method

C. Sum of the years-digits method

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

What is the correct answer?

4

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

A. Assets = equities

B. Assets = liabilities + net worth

C. Total income = costs + profits

D. Assets = capital

What is the correct answer?

4

With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

A. Decreases

B. Increases

C. Increases linearly

D. Remain constant

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

Nominal and effective interest rates are equal, when the interest is compounded

A. Quarterly

B. Semi-annually

C. Annually

D. In no case, they are equal

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 chemical process plant, the total product cost comprises of manufacturing cost and the

A. General expenses

B. Overhead cost

C. R & D cost

D. None of these

What is the correct answer?

4

Direct costs component of the fixed capital consists of

A. Contingencies

B. Onsite and offsite costs

C. Labour costs

D. Raw material costs

What is the correct answer?

4

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

A. Manufacturing cost

B. Depreciation by sinking fund method

C. Discrete compound interest

D. Cash ratio

What is the correct answer?

4

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

A. 40,096

B. 43,196

C. 53,196

D. 60,196

What is the correct answer?

4

Payback period

A. And economic life of a project are the same

B. Is the length of time over which the earnings on a project equals the investment

C. Is affected by the variation in earnings after the recovery of the investment

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

What is the correct answer?

4

Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

A. 15

B. 35

C. 55

D. 75

What is the correct answer?

4

The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

A. Cash reserve

B. Capital

C. Turnover

D. Investment

What is the correct answer?

4

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

A. Competition from other manufactures

B. Product distribution

C. Opportunities

D. Economics

What is the correct answer?

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

A. 1000 (1 + 0.1/4)20

B. 1000 (1 + 0.1)20

C. 1000 (1 + 0.1/4)5

D. 1000 (1 + 0.1/2)5

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

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

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

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

A. More

B. Less

C. Same

D. No

What is the correct answer?

4

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

A. Overhead cost

B. Working capital

C. Indirect production cost

D. Direct production cost

What is the correct answer?

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

What is the correct answer?

4

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

A. Inventories

B. Marketable securities

C. Chemical equipments

D. None of these

What is the correct answer?

4

__________ taxes are based on gross earnings.

A. Property

B. Excise

C. Income

D. Capital gain

What is the correct answer?

4

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

A. Straight line

B. Sinking fund

C. Present worth

D. Declining balance

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

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

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