Chemical Engineering Plant Economics MCQs

Question 1

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

Accepted Answer

Decreases

Answer

Increases

Answer

Remains the same

Answer

May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian

Question 2

The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.

Accepted Answer

Turnover

Answer

Cash reserve

Answer

Capital

Answer

Investment

Question 3

Operating profit of a chemical plant is equal to

Accepted Answer

Profit before interest and tax i.e., net profit + interest + tax

Answer

Profit after tax plus depreciation

Answer

Net profit + tax

Answer

Profit after tax

Question 4

A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs.

Accepted Answer

121

Answer

110

Answer

97

Answer

91

Question 5

Which of the following is a component of working capital investment?

Accepted Answer

Maintenance and repair inventory

Answer

Utilities plants

Answer

Process equipments

Answer

Depreciation

Question 6

Which of the following is not a component of the fixed capital for a chemical plant facility?

Accepted Answer

Raw materials inventory

Answer

Utilities plants

Answer

Process equipment

Answer

Emergency facilities

Question 7

Which of the following is not a component of the working capital for a chemical process plant?

Accepted Answer

Storage facilities

Answer

Product inventory

Answer

In-process inventory

Answer

Minimum cash reserve

Question 8

Optimum economic pipe diameter for fluid is determined by the

Accepted Answer

Total cost considerations (pumping cost plus fixed cost of the pipe)

Answer

Viscosity of the fluid

Answer

Density of the fluid

Answer

None of these

Question 9

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

Accepted Answer

Hydroelectric

Answer

Thermal

Answer

Nuclear

Answer

Fast breeder reactor