11. Generally, income taxes are based on the
total income
gross earning
total product cost
fixed cost
✅ The correct answer is option B.
Plant Economics MCQs
12. Scheduling provides information about the
proper utilisation of machines.
means to minimise idle time for machines.
time of completion of job.
time of starting of job and also about how much work should be completed during a particular period.
✅ The correct answer is option D.
13. Which of the following is not a current asset of a chemical company ?
Inventories
Marketable securities
Chemical equipments
None of these.
✅ The correct answer is option C.
14. 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
R(1 + i)n
R/(1 + i)n
✅ The correct answer is option B.
15. Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75% ?
Stainless steel
Plain carbon steel
Nickel
Copper
✅ The correct answer is option B.
16. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
10
20
>20
< 20
✅ The correct answer is option C.
17. In an ordinary chemical plant, electrical installation cost may be about
10-15% of purchased equipment cost.
3-10% of fixed capital investment.
either (a) or (b).
neither (a) nor (b).
✅ The correct answer is option C.
18. Depreciation
costs (on annual basis) are constant when the straight line method is used for its determination.
is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.
does figure in the calculation of income tax liability on cash flows from an investment.
all (a), (b) and (c).
✅ The correct answer is option D.
19. Which of the following is the costliest material of construction used in pressure vessel construction ?
Low alloy steel
Lead
Titanium
High alloy steel
✅ The correct answer is option C.