- A. Fixed
- B. Overhead
- C. Utilities
- D. Capital
Chemical Engineering Plant Economics (MCQs)
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Effluent treatment cost in a chemical plant is categorised as the __________ cost.
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Pick out the wrong statement.
- A. Gross revenue is that total amount of capital received as a result of the sale of goods or service
- B. Net revenue is the total profit remaining after deducting all costs excluding taxes
- C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio
- D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval
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A balance sheet for an industrial concern shows
- A. The financial condition at any given time
- B. Only current assets
- C. Only fixed assets
- D. Only current and fixed assets
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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 (index value/(index value at original cost was obtained) The most major component of this cost index is
- A. Fabricated equipment and machinery
- B. Process instruments and control
- C. Pumps and compressor
- D. Electrical equipments and material
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A shareholder has __________ say in the affairs of company management compared to a debenture holder.
- A. More
- B. Less
- C. Same
- D. No
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Gantt chart (or Bar chart) is helpful in
- A. Efficient utilisation of manpower and machines
- B. Preparing production schedule
- C. Efficient despatching of products
- D. Inventory control
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The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
- A. Cash ratio
- B. Net working capital
- C. Current ratio
- D. Liquids assets
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Break-even point is the point of intersection of
- A. Fixed cost and total cost
- B. Total cost and sales revenue
- C. Fixed cost and sales revenue
- D. None of these
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__________ taxes are based on gross earnings.
- A. Property
- B. Excise
- C. Income
- D. Capital gain
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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?
- A. Electrical installation cost
- B. Equipment installation cost
- C. Cost for piping
- D. Equipment insulation cost