4

# Which of the following is not a component of the fixed capital for a chemical plant facility?

Raw materials inventory

Utilities plants

Process equipment

Emergency facilities

A. Raw materials inventory

4

# The payback method for the measurement of return on investment

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

4

One

Three

Six

Twelve

4

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

Net present worth

Pay out period

Discounted cash flow

Rate of return on investment

4

Linearly

Non-linearly

Exponentially

Logarithmically

4

# Optimum economic pipe diameter for fluid is determined by the

Viscosity of the fluid

Density of the fluid

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

None of these

4

# Total product cost of a chemical plant does not include the __________ cost.

Market survey

Operating labour, supervision and supplies

Depreciation, property tax and insurance

4

2

10

30

50

4

# Which of the following is not a component of depreciation cost?

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

4

10 to 20

35 to 45

55 to 65

70 to 80

4

5 to 10

20 to 30

40 to 50

60 to 70

4

1.2 to 1.4

2.5 to 2.7

4.2 to 4.4

6.2 to 6.4

4

10 to 20

20 to 40

45 to 60

65 to 75

4

15000

16105

18105

12500

4

# Operating profit of a chemical plant is equal to

Profit before interest and tax i.e., net profit + interest + tax

Profit after tax plus depreciation

Net profit + tax

Profit after tax

4

# Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Water supply

Running a control laboratory

Property protection

Medical services

4

# An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/4)20

1000 (1 + 0.1)20

1000 (1 + 0.1/4)5

1000 (1 + 0.1/2)5

4

# Gross earning is equal to the total income minus

Total product cost

Fixed cost

Income tax

None of these

4

40,096

43,196

53,196

60,196

4

1

5

10

30

4

0.1

0.6

0.2

0.8

4

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

Initial cost

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

Depreciation during the (n - 1)th year

Difference between initial cost and salvage value

4

More

Less

Same

No

4

15%

10%

1.5%

150%

4

# A balance sheet for an industrial concern shows

The financial condition at any given time

Only current assets

Only fixed assets

Only current and fixed assets

4

# A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

Current asset

Current liability

Long term debt

Profit

4

# In financial accounting of a chemical plant, which of the following relationship is invalid?

Assets = equities

Assets = liabilities + net worth

Total income = costs + profits

Assets = capital

4

n

n0.6

n0.4

√n

4

# In declining balance method of depreciation calculation, the

Value of the asset decreases linearly with time

Annual cost of depreciation is same every year

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

None of these

4

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

Cash reserve

Rate of return on investment

Payout period

Discounted cash flow based on full life performance