1. In which of the electric power generation system, the operating cost is minimum ?
Thermal
Nuclear
Hydroelectric
Fast breeder reactor
✅ The correct answer is option C.
Plant Economics MCQs
2. 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
15%
10%
1.50%
150%
✅ The correct answer is option C.
3. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as
perpetuity
capital charge factor
annuity
future worth
✅ The correct answer is option C.
4. Direct costs component of the fixed capital consists of
contingencies
onsite and offsite costs
labour costs
raw material costs
✅ The correct answer is option B.
5. Total product cost of a chemical plant does not include the __________ cost.
market survey
operating labour, supervision and supplies
overhead and utilities
depreciation, property tax and insur-rance
✅ The correct answer is option A.
6. Profit is equal to revenue minus
book value
total cost
operating cost
none of these
✅ The correct answer is option B.
7. Which of the following does not come under the sales expenses for a product of a chemical plant ?
Advertising
Warehousing
Legal fees
Customer service.
✅ The correct answer is option C.
8. 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.
✅ The correct answer is option A.
9. Personnel working in the market research group is reponsible for the job of
equipment selection.
product evaluation.
equipment design.
cost estimation.
✅ The correct answer is option B.
10. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.
overhead cost
fixed expenses
general expenses
direct production cost
✅ The correct answer is option C.