Raw materials inventory.
Utilities plants.
Process equipment.
Emergency facilities.
✅ The correct answer is option A.
Plant Economics MCQs
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.
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.
__________ taxes are based on gross earnings.
Property
Excise
Income
Capital gain
✅ The correct answer is option C.
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.
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.
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.
declining balance
straight line
sum of the years digit
none of these
✅ The correct answer is option B.
Depreciation is __________ in profit with time.
decrease
increase
no change
none of these
✅ The correct answer is option A.
Effluent treatment cost in a chemical plant is categorised as the __________ cost.
fixed
overhead
utilities
capital
✅ The correct answer is option C.
__________ method for profitability evaluation of a project does not account for investment cost due to land.
Net present worth
Pay out period
Discounted cash flow
Rate of return on investment
✅ The correct answer is option B.