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Chemical Engineering

Chemical Engineering Plant Economics MCQs

Practice Chemical Engineering Plant Economics MCQs for competitive exams.

Chemical Engineering Plant Economics MCQs

Practice questions from this topic.

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

  1. A. Overhead cost
  2. B. Working capital
  3. C. Indirect production cost
  4. D. Direct production cost
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An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

  1. A. Manufacturing cost
  2. B. Depreciation by sinking fund method
  3. C. Discrete compound interest
  4. D. Cash ratio
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'Six-tenth factor' rule is used for estimating the

  1. A. Equipment installation cost
  2. B. Equipment cost by scaling
  3. C. Cost of piping
  4. D. Utilities cost
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Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

  1. A. Overhead cost
  2. B. Fixed expenses
  3. C. General expenses
  4. D. Direct production cost
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If an amount 'R' is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of 'i' is

  1. A. R [ frac(1 + i)^n - 1i ]
  2. B. R [ frac(1 + i)^n - 1i (1 + i)^n ]
  3. C. R (1 + i)^n
  4. D. fracR (1 + i)^n
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Which of the following elements is not included in the scope of market analysis?

  1. A. Competition from other manufactures
  2. B. Product distribution
  3. C. Opportunities
  4. D. Economics
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__________ of depreciation calculation does not take into account the interest on investments.

  1. A. Present worth method
  2. B. Sinking fund method
  3. C. Sum of the years-digits method
  4. D. All of the above
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Total product cost of a chemical plant does not include the __________ cost.

  1. A. Market survey
  2. B. Operating labour, supervision and supplies
  3. C. Overhead and utilities
  4. D. Depreciation, property tax and insur-rance
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Optimum number of effects in a multiple effect evaporator is decided by the

  1. A. Cost benefit analysis
  2. B. Floor area availability
  3. C. Terminal parameters
  4. D. Evaporation capacity required
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Gantt chart (or Bar chart) is helpful in

  1. A. Efficient utilisation of manpower and machines
  2. B. Preparing production schedule
  3. C. Efficient despatching of products
  4. 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.

  1. A. Cash ratio
  2. B. Net working capital
  3. C. Current ratio
  4. D. Liquids assets
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Break-even point is the point of intersection of

  1. A. Fixed cost and total cost
  2. B. Total cost and sales revenue
  3. C. Fixed cost and sales revenue
  4. D. None of these
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