Q.1

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

  • Berl saddles
  • Raschig rings
  • Pall rings
  • Intalox saddles
Q.2

Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

  • 0.1
  • 0.6
  • 0.2
  • 0.8
Q.3

A shareholder has __________ say in the affairs of company management compared to a debenture holder.

  • more
  • less
  • same
  • no
Q.4

Manufacturing cost in a chemical company does not include the

  • fixed charges.
  • plant overheads.
  • direct products cost.
  • administrative expenses.
Q.5

Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.

  • overhead cost
  • fixed expenses
  • general expenses
  • direct production cost
Q.6

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

  • Product inventory.
  • In-process inventory.
  • Minimum cash reserve.
  • Storage facilities.
Q.7

A reactor having a salvage value of Rs.is estimated to have a service life ofyears. The annual interest rate is 10%. The original cost of the reactor was Rs.The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

  • 40096
  • 43196
  • 53196
  • 60196
Q.8

Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

  • 15
  • 35
  • 55
  • 75
Q.9

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

  • annually
  • fortnightly
  • monthly
  • half-yearly
Q.10

Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.

  • 15
  • 35
  • 55
  • 75
Q.11

Direct costs component of the fixed capital consists of

  • contingencies
  • onsite and offsite costs
  • labour costs
  • raw material costs
Q.12

Out of the following, the depreciation calculated by the __________ method is the maximum.

  • diminishing balance
  • straight line
  • sum of the years digit
  • sinking fund
Q.13

The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent.

  • 0.1 to 1
  • 1 to 2
  • 10 to 20
  • 50 to 60
Q.14

Utilities cost in the operation of chemical process plant comes under the

  • plant overhead cost
  • fixed charges
  • direct production cost
  • general expenses
Q.15

Pick out the wrong statement.

  • The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.
  • Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.
  • Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.
  • In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).
Q.16

The payback method for the measurement of return on investment

  • gives a correct picture of profitability.
  • underemphasises liquidity.
  • does not measure the discounted rate of return.
  • takes into account the cash inflows after the recovery of investments.
Q.17

Pick out the wrong statement.

  • Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes.
  • A cost index is merely a number for a given year showing the cost at that time relative to a certain base year.
  • Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment.
  • Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary.
Q.18

'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost.

  • l to 5
  • 10 to 20
  • 25 to 35
  • 35 to 45
Q.19

Annual depreciation costs are constant, when the __________ method of depreciation calculation is used.

  • declining balance
  • straight line
  • sum of the years digit
  • none of these
Q.20

__________ method for profitability evaluation of a project does not account for investment cost due to land.

  • Net present worth
  • Pay out period
  • Discounted cash flow
  • Rate of return on investment
Q.21

Construction expenses are roughly __________ percent of the total direct cost of the plant.

  • 2
  • 10
  • 30
  • 50
Q.22

Scheduling provides information about the

  • proper utilisation of machines.
  • means to minimise idle time for machines.
  • time of completion of job.
  • time of starting of job and also about how much work should be completed during a particular period.
Q.23

Accumulated sum at the end of 5 years, if Rs.is invested now atinterest per annum on a compound basis is Rs.

  • 15000
  • 16105
  • 18105
  • 12500
Q.24

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

  • Raw materials is stock.
  • Finished products in stock.
  • Transportation facilities.
  • Semi-finished products in the process.
Q.25

If the interest rate ofper period is compounded half yearly, the actual annual return on the principal will be __________ percent.

  • 10
  • 20
  • >20
  • < 20
Q.26

Pick out the wrong statement.

  • Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of owner's contribution i.e., debt-equity ratio = total debt/net worth.
  • Return on investment (ROI) is the ratio of profit before interest & tax and capital employed (i.e. net worth + total debt).
  • Working capital = current assets + current liability.
  • Turn over = opening stock + production closing stock.
Q.27

The economic life of a large chemical process plant as compared to a small chemical plant is

  • only slightly more
  • much more
  • slightly less
  • almost equal
Q.28

Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

  • 5 to 10
  • 20 to 30
  • 40 to 50
  • 60 to 70
Q.29

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

  • water supply
  • running a control laboratory
  • property protection
  • medical services
Q.30

Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.

  • 10 to 20
  • 35 to 45
  • 55 to 65
  • 70 to 80
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