Home
Current Affairs January 2024

What is the correct answer?

4

The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

A. Initial cost

B. Book value at the end of (n - 1)th year

C. Depreciation during the (n - 1)th year

D. Difference between initial cost and salvage value

Correct Answer :

B. Book value at the end of (n - 1)th year


Related Questions

What is the correct answer?

4

Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

A. Electrical installation cost

B. Equipment installation cost

C. Cost for piping

D. Equipment insulation cost

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

The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

A. One

B. Three

C. Six

D. Twelve

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

Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

A. Stainless steel

B. Plain carbon steel

C. Nickel

D. Copper

What is the correct answer?

4

If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

A. (1 + i)n/S

B. S/(1 + i)n

C. S/(1 + in)

D. S/(1 + n)i

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

'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

A. 1.2 to 1.4

B. 2.5 to 2.7

C. 4.2 to 4.4

D. 6.2 to 6.4

What is the correct answer?

4

Depreciation is __________ in profit with time.

A. Decrease

B. Increase

C. No change

D. None of these

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

In an ordinary chemical plant, electrical installation cost may be about

A. 10-15% of purchased equipment cost

B. 3-10% of fixed capital investment

C. Either (A) or (B)

D. Neither (A) nor (B)

What is the correct answer?

4

Optimum economic pipe diameter for fluid is determined by the

A. Viscosity of the fluid

B. Density of the fluid

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

D. None of these

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

An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the payback time?

A. 5 years

B. 7 years

C. 12 years

D. 10 years

What is the correct answer?

4

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

A. 10 to 20

B. 35 to 45

C. 55 to 65

D. 70 to 80

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

Which of the following does not come under the sales expenses for a product of a chemical plant?

A. Advertising

B. Warehousing

C. Legal fees

D. Customer service

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

Factory manufacturing cost is the sum of the direct production cost

A. Fixed charges and plant overhead cost

B. And plant overhead cost

C. Plant overhead cost and administrative expenses

D. None of these

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

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

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

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]

C. R(1 + i)n

D. R/(1 + i)n

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

Pick out the wrong statement.

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

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

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

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

What is the correct answer?

4

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

A. 15%

B. 10%

C. 1.5%

D. 150%

What is the correct answer?

4

The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

A. Initial cost

B. Book value at the end of (n - 1)th year

C. Depreciation during the (n - 1)th year

D. Difference between initial cost and salvage value

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 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

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