Chemical Engineering Plant Economics MCQs

Question 1

Nominal and effective interest rates are equal, when the interest is compounded

Accepted Answer

Annually

Answer

Quarterly

Answer

Semi-annually

Answer

In no case, they are equal

Question 2

Effective and nominal interest rates are equal, when the interest is compounded

Accepted Answer

Annually

Answer

Fortnightly

Answer

Monthly

Answer

half-yearly

Question 3

Which of the following ceramic packing materials is the costliest of all?

Accepted Answer

Berl saddles

Answer

Raschig rings

Answer

Pall rings

Answer

Intalox saddles

Question 4

Pick out the correct statement.

Accepted Answer

Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date

Answer

Difference between income and expense is termed as gross revenue

Answer

Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment

Answer

Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

Question 5

'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

Accepted Answer

4.2 to 4.4

Answer

1.2 to 1.4

Answer

2.5 to 2.7

Answer

6.2 to 6.4

Question 6

In an ordinary chemical plant, electrical installation cost may be about

Accepted Answer

Either A or B

Answer

10-15% of purchased equipment cost

Answer

3-10% of fixed capital investment

Answer

Neither A nor B

Question 7

Manufacturing cost in a chemical company does not include the

Accepted Answer

Administrative expenses

Answer

Fixed charges

Answer

Plant overheads

Answer

Direct products cost

Question 8

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

Accepted Answer

Repairs and maintenance cost

Answer

Loss due to obsolescence of the equipment

Answer

Loss due to decrease in the demand of product

Answer

Loss due to accident/breakdown in the machinery

Question 9

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

Accepted Answer

Water supply

Answer

Running a control laboratory

Answer

Property protection

Answer

Medical services