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4

The value of a property decreases __________ with time in straight line method of determining depreciation.

A. Linearly

B. Non-linearly

C. Exponentially

D. Logarithmically

Correct Answer :

A. Linearly


Related Questions

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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

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4

Fixed charges for a chemical plant does not include the

A. Interest on borrowed money

B. Rent of land and buildings

C. Property tax, insurance and depreciation

D. Repair and maintenance charges

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4

Direct costs component of the fixed capital consists of

A. Contingencies

B. Onsite and offsite costs

C. Labour costs

D. Raw material costs

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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

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4

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

A. More

B. Less

C. Same

D. No

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4

'Six-tenth factor' rule is used for estimating the

A. Equipment installation cost

B. Equipment cost by scaling

C. Cost of piping

D. Utilities cost

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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

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

A. 5 to 10

B. 20 to 30

C. 40 to 50

D. 60 to 70

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4

'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for Rath year by the sum-of years digit method will be

A. (P - S)/n

B. 1 - (P/S)1/m

C. (m/n) (P - S)

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

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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

Personnel working in the market research group is responsible for the job of

A. Equipment selection

B. Product evaluation

C. Equipment design

D. Cost estimation

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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

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4

The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

A. p.i.n.

B. p(1 + i.n)

C. p(1 + i)n

D. p(1 - i.n)

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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

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

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4

Gross earning is equal to the total income minus

A. Total product cost

B. Fixed cost

C. Income tax

D. None of these

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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

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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

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

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

Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.

A. 15000

B. 16105

C. 18105

D. 12500

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4

__________ method for profitability evaluation of a project does not account for investment cost due to land.

A. Net present worth

B. Pay out period

C. Discounted cash flow

D. Rate of return on investment

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4

Which of the following is a component of working capital investment?

A. Utilities plants

B. Maintenance and repair inventory

C. Process equipments

D. Depreciation

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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

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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

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

A. Cash reserve

B. Rate of return on investment

C. Payout period

D. Discounted cash flow based on full life performance

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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

The amount of compounded interest during 'n' interest periods is

A. p[(1+i)n - 1)]

B. p(1 + i)n

C. p(1 - i)n

D. p(1 + in)

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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

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4

Gantt chart (or Bar chart) is helpful in

A. Efficient utilisation of manpower and machines

B. Preparing production schedule

C. Efficient despatching of products

D. Inventory control