51. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
one
three
six
twelve
✅ The correct answer is option A.
Plant Economics MCQs
52. Operating profit of a chemical plant is equal to
profit before interest and tax i.e., net profit + interest + tax
profit after tax plus depreciation
net profit + tax
profit after tax
✅ The correct answer is option A.
54. 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 ?
Electrical installation cost.
Equipment installation cost.
Cost for piping.
Equipment insulation cost.
✅ The correct answer is option D.
55. Which of the following is a component of working capital investment ?
Utilities plants.
Maintenance and repair inventory.
Process equipments.
Depreciation.
✅ The correct answer is option B.
56. ‘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
1.2 to 1.4
2.5 to 2.7
4.2 to 4.4
6.2 to 6.4
✅ The correct answer is option C.
57. A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.
121
110
97
91
✅ The correct answer is option A.
58. 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 x The most major component of this cost index is
fabricated equipment and machinery.
process instruments and control.
pumps and compressor.
electrical equipments and material.
✅ The correct answer is option A.
59. Which of the following relationship is not correct is case of a chemical process plant ?
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.
✅ The correct answer is option D.
60. Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.
5 to 10
20 to 30
40 to 50
60 to 70
✅ The correct answer is option B.