Chemical Engineering Plant Economics - Section 1

Directions to Solve

Chemical Engineering Plant Economics - Section 1

This is engineering branch and if you want to
test your aptitude ability in this field then you can solve the given MCQs based on this field.

1.

A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

A.	perpetuity
B.	capital charge factor
C.	annuity
D.	future worth

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.

2.

Which of the following is not a component of depreciation cost ?

A.	Repairs and maintenance cost.
B.	Loss due to obsolescence of the equipment.
C.	Loss due to decrease in the demand of product.
D.	Loss due to accident/breakdown in the machinery.

Answer: Option A

Explanation:

No answer description available for this question. Let us discuss.

3.

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

A.	300
B.	600
C.	800
D.	1000

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.

4.

Construction expenses are roughly __________ percent of the total direct cost of the plant.

A.	2
B.	10
C.	30
D.	50

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

5.

Pick out the wrong statement..

A.	Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes.
B.	A cost index is merely a number for a given year showing the cost at that time relative to a certain base year.
C.	Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment.
D.	Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary.

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

6.

Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

A.	straight line
B.	sinking fund
C.	present worth
D.	declining balance.

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

7.

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

A.	10 to 20
B.	35 to 45
C.	55 to 65
D.	70 to 80

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

8.

Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

A.	water supply
B.	running a control laboratory
C.	property protection
D.	medical services

Answer: Option A

Explanation:

No answer description available for this question. Let us discuss.

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