Repairs and maintenance cost
Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Loss due to accident/breakdown in the machinery
A. Repairs and maintenance cost
Gives a correct picture of profitability
Underemphasises liquidity
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments
Annually
Fortnightly
Monthly
Half-yearly
15000
16105
18105
12500
Efficient utilisation of manpower and machines
Preparing production schedule
Efficient despatching of products
Inventory control
R [{(1 + i)n - 1}/ i ]
R [{(1 + i)n - 1}/ i (1 + i)n]
R(1 + i)n
R/(1 + i)n
Interest on borrowed money
Rent of land and buildings
Property tax, insurance and depreciation
Repair and maintenance charges
Raw materials inventory
Utilities plants
Process equipment
Emergency facilities
n
n0.6
n0.4
√n
Present worth method
Sinking fund method
Sum of the years-digits method
All (A), (B) and (C)
Water supply
Running a control laboratory
Property protection
Medical services
And economic life of a project are the same
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All (A), (B) and (C)
Only slightly more
Much more
Slightly less
Almost equal
5 to 10
20 to 30
40 to 50
60 to 70
Market survey
Operating labour, supervision and supplies
Overhead and utilities
Depreciation, property tax and insurance
15
35
55
75
Declining balance
Straight line
Sum of the years digit
None of these
Repairs and maintenance cost
Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Loss due to accident/breakdown in the machinery
One
Three
Six
Twelve
The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Book value
Total cost
Operating cost
None of these
Straight line method
Declining balance
Both (A) and (B)
Neither (A) nor (B)
2
10
30
50
Advertising
Warehousing
Legal fees
Customer service
(P - S)/n
1 - (P/S)1/m
(m/n) (P - S)
[2 (n - m + 1)/n(n + 1)]. (P - S)
Equipment installation cost
Equipment cost by scaling
Cost of piping
Utilities cost
Plant overhead cost
Fixed charges
Direct production cost
General expenses
Total product cost
Fixed cost
Income tax
None of these
4
13
22
34
Gross margin = net income - net expenditure
Net sales realisation (NSR) = Gross sales - selling expenses
At breakeven point, NSR is more than the total production cost
Net profit = Gross margin - depreciation - interest
15%
10%
1.5%
150%