cash reserve
capital
turnover
investment
✅ The correct answer is option C.
Plant Economics MCQs
Utilities cost in the operation of chemical process plant comes under the
plant overhead cost
fixed charges
direct production cost
general expenses
✅ The correct answer is option C.
Gross earning is equal to the total income minus
total product cost
fixed cost
income tax
none of these
✅ The correct answer is option A.
A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.
current asset
current liability
long term debt
profit
✅ The correct answer is option D.
If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by
(1 + i)n/S
S/(1 + i)n
S/(1 + in)
S/(1 + n)i
✅ The correct answer is option B.
Fixed charges for a chemical plant does not include the
interest on borrowed money.
rent of land and buildings.
property tax, insurance and depreciation.
repair and maintenance charges.
✅ The correct answer is option D.
__________ of depreciation calculation accounts for the interest on investement.
Straight line method
Declining balance
both (a) and (b)
neither (a) nor (b).
✅ The correct answer is option D.
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.
‘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.
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.