### Related Questions

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# The payback method for the measurement of return on investment

A. Gives a correct picture of profitability

B. Underemphasises liquidity

C. Does not measure the discounted rate of return

D. Takes into account the cash inflows after the recovery of investments

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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.

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

D. Rate of return on investment

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

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4

# Optimum economic pipe diameter for fluid is determined by the

A. Viscosity of the fluid

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

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

B. Operating labour, supervision and supplies

C. Overhead and utilities

D. Depreciation, property tax and insurance

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

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

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

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# '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

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# Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

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# 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.

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# 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

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

B. Running a control laboratory

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# 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

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4

# Gross earning is equal to the total income minus

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# 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.

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# Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

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# 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

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

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

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# 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

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4

# A balance sheet for an industrial concern shows

A. The financial condition at any given time

D. Only current and fixed assets

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

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

B. Assets = liabilities + net worth

C. Total income = costs + profits

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# 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.

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# In declining balance method of depreciation calculation, the

A. Value of the asset decreases linearly with time

B. Annual cost of depreciation is same every year

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

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

B. Rate of return on investment

D. Discounted cash flow based on full life performance

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# The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

C. Indirect production cost

D. Direct production cost