Related Questions
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Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is
A. Fabricated equipment and machinery
B. Process instruments and control
D. Electrical equipments and material
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4
Nominal and effective interest rates are equal, when the interest is compounded
D. In no case, they are equal
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The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the
C. Indirect production cost
D. Direct production cost
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The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
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4
Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
B. Running a control laboratory
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A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.
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__________ taxes are based on gross earnings.
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Construction expenses are roughly __________ percent of the total direct cost of the plant.
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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
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The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
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Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogenous fertiliser?
B. Steam reforming of naphtha
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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
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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
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4
In financial accounting of a chemical plant, which of the following relationship is invalid?
B. Assets = liabilities + net worth
C. Total income = costs + profits
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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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If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is
A. R [{(1 + i)n - 1}/ i ]
B. R [{(1 + i)n - 1}/ i (1 + i)n]
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'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from
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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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Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.
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Which of the following is not a current asset of a chemical company?
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Which of the following does not come under the sales expenses for a product of a chemical plant?
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Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
C. Sum of the years digit
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Effluent treatment cost in a chemical plant is categorised as the __________ cost.
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Functional depreciation of an equipment is the measure of decrease in its value due to its
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If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
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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
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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
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Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.
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Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
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Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.