61. The value of a property decreases __________ with time in straight line method of determining depreciation.
linearly
non-linearily
exponentially
logarithmically
✅ The correct answer is option A.
Plant Economics MCQs
62. Gantt chart (or Bar chart) is helpful in
efficient utilisation of manpower and machines.
preparing production schedule.
efficient despatching of products.
inventory control.
✅ The correct answer is option B.
63. Which of the following elements is not included in the scope of market analysis ?
Competition from other manufactures.
Product distribution.
Opportunities
Economics
✅ The correct answer is option D.
64. A shareholder has __________ say in the affairs of company management compared to a debenture holder.
more
less
same
no
✅ The correct answer is option A.
65. Which of the following is not a component of working capital ?
Raw materials is stock.
Finished products in stock.
Transportation facilities.
Semi-finished products in the process.
✅ The correct answer is option C.
66. The payback method for the measurement of return on investment
gives a correct picture of profitability.
underemphasises liquidity.
does not measure the discounted rate of return.
takes into account the cash inflows after the recovery of investments.
✅ The correct answer is option C.
67. Manufacturing cost in a chemical company does not include the
fixed charges.
plant overheads.
direct products cost.
administrative expenses.
✅ The correct answer is option D.
68. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
0.1
0.6
0.2
0.8
✅ The correct answer is option B.
69. In a manufacturing industry, break even point occurs, when the
total annual rate of production equals the assigned value.
total annual product cost equals the total annual sales.
annual profit equals the expected value.
annual sales equals the fixed cost.
✅ The correct answer is option B.
70. “Break-even point” is the point of intersection of
fixed cost and total cost.
total cost and sales revenue.
fixed cost and sales revenue.
none of these.
✅ The correct answer is option B.