1. The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the

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

3. In declining balance method of depreciation calculation, the

4. Generally, income taxes are based on the

5. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

6. 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

7. Which of the following relationship is not correct is case of a chemical process plant?

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

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

10. Factory manufacturing cost is the sum of the direct production cost

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

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

13. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant.

14. 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.

15. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

16. Direct costs component of the fixed capital consists of

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

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

19. 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

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

21. Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

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

23. Depreciation is __________ in profit with time.

24. 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

25. In a manufacturing industry, break even point occurs, when the

26. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.

27. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.

28. An investment of Rs. 100 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. 20 lakhs. What will be the pay back time?

29. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is

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

31. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs.

32. Fixed charges for a chemical plant does not include the

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

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

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

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

37. Depreciation

38. The amount of compounded interest during ‘n’ interest periods is

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

40. 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.

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

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

43. ‘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.

44. Pick out the wrong statement.

45. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

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

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

48. Operating profit of a chemical plant is equal to

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

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

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

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

53. Optimum economic pipe diameter for fluid is determined by the

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

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

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

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

58. Pick out the correct statement.

59. ‘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

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

61. Manufacturing cost in a chemical company does not include the

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

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

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

65. Pick out the wrong statement.

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

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

68. Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.

69. ‘P’ is the investment made on an equipment, ‘S’ is its salvage value and ‘n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

70. Profit is equal to revenue minus

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

72. 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

73. A balance sheet for an industrial concern shows

74. Pick out the wrong statement.

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

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

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

78. Personnel working in the market research group is reponsible for the job of

79. Payback period

80. Pick out the wrong statement.

81. Which of the following is the costliest material of construction used in pressure vessel construction?

82. Scheduling provides information about the

83. Gross earning is equal to the total income minus

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

85. __________ of depreciation calculation accounts for the interest on investement.

86. Pick out the wrong statement.

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

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

89. Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

90. The payback method for the measurement of return on investment

91. 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?

92. __________ taxes are based on gross earnings.

93. Break-even point is the point of intersection of

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

95. Gantt chart (or Bar chart) is helpful in

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

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

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

99. Which of the following elements is not included in the scope of market analysis?

100. 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

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

102. Pick out the wrong statement.

103. ‘Six-tenth factor’ rule is used for estimating the

104. 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

105. The ‘total capital investment’ for a chemical process plant comprises of the fixed capital investment and the

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