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Current Affairs January 2024

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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

Correct Answer :

C. 10 to 20


Related Questions

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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

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4

Generally, income taxes are based on the

A. Total income

B. Gross earning

C. Total product cost

D. Fixed cost

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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

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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

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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

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4

Scheduling provides information about the

A. Proper utilisation of machines

B. Means to minimise idle time for machines

C. Time of completion of job

D. Time of starting of job and also about how much work should be completed during a particular period

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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

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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)

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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

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4

Construction expenses are roughly __________ percent of the total direct cost of the plant.

A. 2

B. 10

C. 30

D. 50

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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

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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)

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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)

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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

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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

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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

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4

The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

A. Cash ratio

B. Net working capital

C. Current ratio

D. Liquids assets

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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

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4

Which of the following is not a component of the working capital for a chemical process plant?

A. Product inventory

B. In-process inventory

C. Minimum cash reserve

D. Storage facilities

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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

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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

B. Sinking fund method

C. Declining balance method

D. Sum of the years digit method

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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

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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

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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

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4

A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

A. Perpetuity

B. Capital charge factor

C. Annuity

D. Future worth

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4

For a given fluid, as the pipe diameter increases, the pumping cost

A. Decreases

B. Increases

C. Remains the same

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

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4

Manufacturing cost in a chemical company does not include the

A. Fixed charges

B. Plant overheads

C. Direct products cost

D. Administrative expenses

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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

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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

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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