Chemical Engineering Plant Economics - Section 1 (5)

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.

33.

In a manufacturing industry, break even point occurs, when the

A.	total annual rate of production equals the assigned value.
B.	total annual product cost equals the total annual sales.
C.	annual profit equals the expected value.
D.	annual sales equals the fixed cost.

Answer: Option B

Explanation:

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

34.

Operating profit of a chemical plant is equal to

A.	profit before interest and tax i.e., net profit + interest + tax
B.	profit after tax plus depreciation
C.	net profit + tax
D.	profit after tax

Answer: Option A

Explanation:

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35.

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.

A.	15000
B.	16105
C.	18105
D.	12500

Answer: Option B

Explanation:

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36.

In which of the electric power generation system, the operating cost is minimum ?

A.	Thermal
B.	Nuclear
C.	Hydroelectric
D.	Fast breeder reactor

Answer: Option C

Explanation:

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37.

For a given fluid, as the pipe diameter increases, the pumping cost

A.	decreases.
B.	increases.
C.	remains the same.
D.	may increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian.

Answer: Option A

Explanation:

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38.

Which of the following relationship is not correct is case of a chemical process plant ?

A.	Manufacturing cost = direct product cost + fixed charges + plant overhead costs
B.	General expenses = administrative expenses + distribution & marketing expenses
C.	Total product cost = manufacturing cost + general expenses
D.	Total product cost = direct production cost + plant overhead cost.

Answer: Option D

Explanation:

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39.

In declining balance method of depreciation calculation, the

A.	value of the asset decreases linearly with time.
B.	annual cost of depreciation is same every year.
C.	annual depreciation is the fixed percentage of the property value at the beginning of the particular year.
D.	none of these.

Answer: Option C

Explanation:

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40.

Which of the following is not a component of working capital ?

A.	Raw materials is stock.
B.	Finished products in stock.
C.	Transportation facilities.
D.	Semi-finished products in the process.

Answer: Option C

Explanation:

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