Manufacturing cost = direct product cost + fixed charges + plant overhead costs
General expenses = administrative expenses + distribution & marketing expenses
Total product cost = manufacturing cost + general expenses
Total product cost = direct production cost + plant overhead cost
D. Total product cost = direct production cost + plant overhead cost
Coal gasification
Steam reforming of naphtha
Electrolysis of water
Coke oven gas
5 to 10
20 to 30
40 to 50
60 to 70
15000
16105
18105
12500
Straight line method
Declining balance
Both (A) and (B)
Neither (A) nor (B)
Multiple straight line method
Sinking fund method
Declining balance method
Sum of the years digit method
1.2 to 1.4
2.5 to 2.7
4.2 to 4.4
6.2 to 6.4
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)
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
(1 + i)n/S
S/(1 + i)n
S/(1 + in)
S/(1 + n)i
Perpetuity
Capital charge factor
Annuity
Future worth
0.1
0.6
0.2
0.8
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)
300
600
800
1000
Net present worth
Pay out period
Discounted cash flow
Rate of return on investment
Ageing
Wear and tear
Obsolescence
Breakdown or accident
Fixed
Overhead
Utilities
Capital
1
5
10
30
Decrease
Increase
No change
None of these
1 to 5
10 to 20
25 to 35
35 to 45
Assets = equities
Assets = liabilities + net worth
Total income = costs + profits
Assets = capital
Contingencies
Onsite and offsite costs
Labour costs
Raw material costs
Equipment selection
Product evaluation
Equipment design
Cost estimation
Gross revenue is that total amount of capital received as a result of the sale of goods or service
Net revenue is the total profit remaining after deducting all costs excluding taxes
The ratio of immediately available cash to the total current liabilities is known as the cash ratio
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
Water supply
Running a control laboratory
Property protection
Medical services
Efficient utilisation of manpower and machines
Preparing production schedule
Efficient despatching of products
Inventory control
Linearly
Non-linearly
Exponentially
Logarithmically
4
13
22
34
n
n0.6
n0.4
√n
Interest on borrowed money
Rent of land and buildings
Property tax, insurance and depreciation
Repair and maintenance charges
Decreases
Increases
Increases linearly
Remain constant