Q.1
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.
Q.2
The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the
Q.3
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
Q.4
Construction expenses are roughly __________ percent of the total direct cost of the plant.
Q.5
In financial accounting of a chemical plant, which of the following relationship is invalid?
Q.6
A shareholder has __________ say in the affairs of company management compared to a debenture holder.
Q.7
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
The present cost of the plant = original cost x (index value/(index value at original cost was obtained)
The most major component of this cost index is
Q.8
__________ of depreciation calculation accounts for the interest on investement.
Q.9
The payback method for the measurement of return on investment
Q.10
Personnel working in the market research group is reponsible for the job of
Q.11
Payback period
Q.12
A balance sheet for an industrial concern shows
Q.13
Pick out the wrong statement.
Q.14
Pick out the wrong statement.
Q.15
Effluent treatment cost in a chemical plant is categorised as the __________ cost.
Q.16

For a typical project, the cumulative cash flow is zero at the

  • end of the project life.
  • break even point.
  • start up.
  • end of the design stage.
Q.17

The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)

  • p.i.n.
  • p(1 + i.n)
  • p(1 + i)n
  • p(1 - i.n)
Q.18

Generally, income taxes are based on the

  • total income
  • gross earning
  • total product cost
  • fixed cost
Q.19

With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

  • decreases
  • increases
  • increases linearly
  • remains constant
Q.20

Which of the following does not come under the sales expenses for a product of a chemical plant ?

  • Advertising
  • Warehousing
  • Legal fees
  • Customer service.
Q.21

Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

  • Multiple straight line method
  • Sinking fund method
  • Declining balance method
  • Sum of the years digit method
Q.22

An investment of Rs.lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs.lakhs. What will be the pay back time ?

  • 5 years
  • 7 years
  • 12 years
  • 10 years
Q.23

Pick out the correct statement.

  • Difference between income and expense is termed as gross revenue.
  • Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date.
  • Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment.
  • 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.
Q.24

A balance sheet for an industrial concern shows

  • the financial condition at any given time.
  • only current assets.
  • only fixed assets.
  • only current and fixed assets.
Q.25

__________ of depreciation calculation does not take into account the interest on investments.

  • Present worth method
  • Sinking fund method
  • Sum of the years-digits method
  • all (a), (b) and (c)
Q.26

If 'S' is the amount available after 'n' interest periods for an initial principal 'P' with the discrete compound interest rate 'i', the present worth is given by

  • (1 + i)n/S
  • S/(1 + i)n
  • S/(1 + in)
  • S/(1 + n)i
Q.27

Total product cost of a chemical plant does not include the __________ cost.

  • market survey
  • operating labour, supervision and supplies
  • overhead and utilities
  • depreciation, property tax and insur-rance
Q.28

The value of a property decreases __________ with time in straight line method of determining depreciation.

  • linearly
  • non-linearily
  • exponentially
  • logarithmically
Q.29

'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

  • 1.2 to 1.4
  • 2.5 to 2.7
  • 4.2 to 4.4
  • 6.2 to 6.4
Q.30

Optimum number of effects in a multiple effect evaporator is decided by the

  • cost benefit analysis.
  • floor area availability.
  • terminal parameters.
  • evaporation capacity required.
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