Chemical Engineering Plant Economics - Part 1 Online Exam Quiz

Chemical Engineering Plant Economics - Part 1 GK Quiz. Question and Answers related to Chemical Engineering Plant Economics - Part 1. MCQ (Multiple Choice Questions with answers about Chemical Engineering Plant Economics - Part 1

Direct costs component of the fixed capital consists of


A : contingencies

B : onsite and offsite costs

C : labour costs

D : raw material costs

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


A : diminishing balance

B : straight line

C : sum of the years digit

D : sinking fund

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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.


A : 0.1 to 1

B : 1 to 2

C : 10 to 20

D : 50 to 60

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


A : plant overhead cost

B : fixed charges

C : direct production cost

D : general expenses

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Pick out the wrong statement.


A : The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.

B : Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.

C : Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.

D : In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).

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


A : Net present worth

B : Pay out period

C : Discounted cash flow

D : Rate of return on investment

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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


A : 15%

B : 10%

C : 1.5%

D : 150%

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


A : quarterly

B : semi-annually

C : annually

D : in no case, they are equal

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


A : Competition from other manufactures.

B : Product distribution.

C : Opportunities

D : Economics

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__________ of depreciation calculation accounts for the interest on investement.


A : Straight line method

B : Declining balance

C : both (a) and (b)

D : neither (a) nor (b).

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