Q.1

Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment.

  • 10 to 20
  • 20 to 40
  • 45 to 60
  • 65 to 75
Q.2

Optimum economic pipe diameter for fluid is determined by the

  • viscosity of the fluid.
  • density of the fluid.
  • total cost considerations (pumping cost plus fixed cost of the pipe).
  • none of these.
Q.3

Effluent treatment cost in a chemical plant is categorised as the __________ cost.

  • fixed
  • overhead
  • utilities
  • capital
Q.4

Depreciation is __________ in profit with time.

  • decrease
  • increase
  • no change
  • none of these
Q.5

Gantt chart (or Bar chart) is helpful in

  • efficient utilisation of manpower and machines.
  • preparing production schedule.
  • efficient despatching of products.
  • inventory control.
Q.6

A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

  • current asset
  • current liability
  • long term debt
  • profit
Q.7

Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser ?

  • Coal gasification
  • Steam reforming of naphtha
  • Alectrolysis of water
  • Coke oven gas
Q.8

In a chemical process plant, the total product cost comprises of manufacturing cost and the

  • general expenses
  • overhead cost
  • R & D cost
  • none of these
Q.9

Pick out the wrong statement.

  • Gross margin = net income - net expenditure
  • Net sales realisation (NSR) = Gross sales - selling expenses
  • At break even point, NSR is more than the total production cost
  • Net profit = Gross margin - depreciation - interest
Q.10

Which of the following is not a current asset of a chemical company ?

  • Inventories
  • Marketable securities
  • Chemical equipments
  • None of these.
Q.11

Factory manufacturing cost is the sum of the direct production cost

  • fixed charges and plant overhead cost.
  • and plant overhead cost.
  • plant overhead cost and administrative expenses.
  • none of these.
Q.12

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

  • 121
  • 110
  • 97
  • 91
Q.13

Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

  • Electrical installation cost.
  • Equipment installation cost.
  • Cost for piping.
  • Equipment insulation cost.
Q.14

Profit is equal to revenue minus

  • book value
  • total cost
  • operating cost
  • none of these
Q.15

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

  • overhead cost
  • working capital
  • indirect production cost
  • direct production cost
Q.16

Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment.

  • 4
  • 13
  • 22
  • 34
Q.17

In financial accounting of a chemical plant, which of the following relationship is invalid?

  • Assets = equities
  • Assets = liabilities + net worth
  • Total income = costs + profits
  • Assets = capital.
Q.18

Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of?

  • Stainless steel
  • Plain carbon steel
  • Nickel
  • Copper
Q.19

In a chemical process plant, the total product cost comprises of manufacturing cost and the

  • general expenses
  • overhead cost
  • R & D cost
  • none of these
Q.20

Depreciation

  • costs (on annual basis) are constant when the straight line method is used for its determination.
  • is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.
  • does figure in the calculation of income tax liability on cash flows from an investment.
  • all (a), (b) and (c).
Q.21

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

  • Raw materials inventory.
  • Utilities plants.
  • Process equipment.
  • Emergency facilities.
Q.22

The amount of compounded interest during 'n' interest periods is

  • p[(1+i)n-1)]
  • p(1 + i)n
  • p(1 - i)n
  • p(1 + in)
Q.23

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with '' times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

  • n
  • n0.6
  • n0.4
  • n
Q.24

Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

  • 1
  • 5
  • 10
  • 30
Q.25

Functional depreciation of an equipment is the measure of decrease in its value due to its

  • ageing
  • wear and tear
  • obsolescence
  • breakdown or accident
Q.26

The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.

  • cash ratio
  • net working capital
  • current ratio
  • liquids assets
Q.27

An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

  • manufacturing cost.
  • depreciation by sinking fund method.
  • discrete compound interest.
  • cash ratio.
Q.28

Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant ?

  • Cash reserve.
  • Rate of return on investment.
  • Payout period.
  • Discounted cash flow based on full life performance.
Q.29

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

  • cash reserve
  • capital
  • turnover
  • investment
Q.30

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

  • annually
  • fortnightly
  • monthly
  • half-yearly
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