Chemical Engineering Plant Economics — Part 2 MCQs with Explanations

10 to 20 is the correct answer to “The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Sinking fund method is the correct answer to “Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

10 is the correct answer to “Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

10 to 20 is the correct answer to “'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.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

60196 is the correct answer to “A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Decreases is the correct answer to “For a given fluid, as the pipe diameter increases, the pumping cost”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Turnover is the correct answer to “The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Profit before interest and tax i.e., net profit + interest + tax is the correct answer to “Operating profit of a chemical plant is equal to”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

121 is the correct answer to “A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Maintenance and repair inventory is the correct answer to “Which of the following is a component of working capital investment”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Raw materials inventory is the correct answer to “Which of the following is not a component of the fixed capital for a chemical plant facility”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Storage facilities is the correct answer to “Which of the following is not a component of the working capital for a chemical process plant”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Total cost considerations (pumping cost plus fixed cost of the pipe) is the correct answer to “Optimum economic pipe diameter for fluid is determined by the”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Hydroelectric is the correct answer to “In which of the electric power generation system, the operating cost is minimum”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Annually is the correct answer to “Nominal and effective interest rates are equal, when the interest is compounded”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Annually is the correct answer to “Effective and nominal interest rates are equal, when the interest is compounded”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Berl saddles is the correct answer to “Which of the following ceramic packing materials is the costliest of all”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

4.2 to 4.4 is the correct answer to “'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Either A or B is the correct answer to “In an ordinary chemical plant, electrical installation cost may be about”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Administrative expenses is the correct answer to “Manufacturing cost in a chemical company does not include the”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Repairs and maintenance cost is the correct answer to “Which of the following is not a component of depreciation cost”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Water supply is the correct answer to “Cost incurred towards __________ in a chemical plant is a component of the utilities cost.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Profit is the correct answer to “A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

35 is the correct answer to “Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

P.i.n. is the correct answer to “The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

16105 is the correct answer to “Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

$$\frac{{2\left( {{\text{n}} - {\text{m}} + 1} \right)}}{{{\text{n}}\left( {{\text{n}} + 1} \right)}} \cdot \left( {{\text{P}} - {\text{S}}} \right)$$ is the correct answer to “'P' is the investment made on an equipment, 'S' is its salvage value and 'n' is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Total cost is the correct answer to “Profit is equal to revenue minus”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

More is the correct answer to “A shareholder has __________ say in the affairs of company management compared to a debenture holder.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Fabricated equipment and machinery is the correct answer to “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 = $${\text{original cost}} \times \frac{{{\text{index value at present}}}}{{{\text{index value at time original cost was obtained}}}}.$$ The most major component of this cost index is”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

The financial condition at any given time is the correct answer to “A balance sheet for an industrial concern shows”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Utilities is the correct answer to “Effluent treatment cost in a chemical plant is categorised as the __________ cost.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

10 is the correct answer to “Construction expenses are roughly __________ percent of the total direct cost of the plant.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Assets = capital is the correct answer to “In financial accounting of a chemical plant, which of the following relationship is invalid”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Product evaluation is the correct answer to “Personnel working in the market research group is reponsible for the job of”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Is the length of time over which the earnings on a project equals the investment is the correct answer to “Payback period”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Titanium is the correct answer to “Which of the following is the costliest material of construction used in pressure vessel construction”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Time of starting of job and also about how much work should be completed during a particular period is the correct answer to “Scheduling provides information about the”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Total product cost is the correct answer to “Gross earning is equal to the total income minus”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.

Pay out period is the correct answer to “__________ method for profitability evaluation of a project does not account for investment cost due to land.”. This question is standard in competitive examination syllabi for Chemical Engineering Plant Economics.