### Related Questions

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4

# Pick out the wrong statement.

A. Gross margin = net income - net expenditure

B. Net sales realisation (NSR) = Gross sales - selling expenses

C. At breakeven point, NSR is more than the total production cost

D. Net profit = Gross margin - depreciation - interest

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4

# With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

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4

# __________ of depreciation calculation accounts for the interest on investment.

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4

# __________ taxes are based on gross earnings.

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# 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

D. Equipment insulation cost

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

B. Maintenance and repair inventory

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# Manufacturing cost in a chemical company does not include the

D. Administrative expenses

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

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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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# 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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# Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is

A. Fabricated equipment and machinery

B. Process instruments and control

D. Electrical equipments and material

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4

# If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

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

A. Equipment installation cost

B. Equipment cost by scaling

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

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4

# Nominal and effective interest rates are equal, when the interest is compounded

D. In no case, they are equal

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# For a typical project, the cumulative cash flow is zero at the

A. End of the project life

D. End of the design stage

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# 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}]

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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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# In a chemical process plant, the total product cost comprises of manufacturing cost and the

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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

# The economic life of a large chemical process plant as compared to a small chemical plant is

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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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# Which of the following does not come under the sales expenses for a product of a chemical plant?

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# Which of the following is the costliest material of construction used in pressure vessel construction?

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# Effective and nominal interest rates are equal, when the interest is compounded

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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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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

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# 'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product 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