Straight line method
Declining balance
both (a) and (b)
neither (a) nor (b).
✅ The correct answer is option D.
Plant Economics MCQs
82. Out of the following, the depreciation calculated by the __________ method is the maximum.
diminishing balance
straight line
sum of the years digit
sinking fund
✅ The correct answer is option A.
83. ‘Utilities’ in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.
l to 5
10 to 20
25 to 35
35 to 45
✅ The correct answer is option B.
84. Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
straight line
sinking fund
present worth
declining balance.
✅ The correct answer is option D.
85. Which of the following is not a component of the fixed capital for a chemical plant facility?
Raw materials inventory.
Utilities plants.
Process equipment.
Emergency facilities.
✅ The correct answer is option A.
86. In declining balance method of depreciation calculation, the
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.
✅ The correct answer is option C.
87. Optimum economic pipe diameter for fluid is determined by the
viscosity of the fluid.
density of the fluid.
total cost considerations (pumping cost plus fixed cost of the pipe).
none of these.
✅ The correct answer is option C.
88. __________ taxes are based on gross earnings.
Property
Excise
Income
Capital gain
✅ The correct answer is option C.
89. Which of the following is not a component of the working capital for a chemical process plant ?
Product inventory.
In-process inventory.
Minimum cash reserve.
Storage facilities.
✅ The correct answer is option D.
90. Which of the following is not a component of depreciation cost ?
Repairs and maintenance cost.
Loss due to obsolescence of the equipment.
Loss due to decrease in the demand of product.
Loss due to accident/breakdown in the machinery.
✅ The correct answer is option A.