Questions and answers for exam Preparation

MCQs

Total Questions : 398 | Page 10 of 40 pages

Question 91. Effective and nominal interest rates are equal, when the interest is compounded

Annually
Fortnightly
Monthly
half-yearly

Discuss Question

Answer: Option A. -> Annually

Question 92. Which of the following ceramic packing materials is the costliest of all?

Berl saddles
Raschig rings
Pall rings
Intalox saddles

Discuss Question

Answer: Option A. -> Berl saddles

Question 93. In an ordinary chemical plant, electrical installation cost may be about

10-15% of purchased equipment cost
3-10% of fixed capital investment
Either A or B
Neither A nor B

Discuss Question

Answer: Option C. -> Either A or B

Question 94. 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

Discuss Question

Answer: Option B. -> Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date

Question 95. '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

Discuss Question

Answer: Option C. -> 4.2 to 4.4

Question 96. Manufacturing cost in a chemical company does not include the

Fixed charges
Plant overheads
Direct products cost
Administrative expenses

Discuss Question

Answer: Option D. -> Administrative expenses

Question 97. Which of the following is not a component of depreciation cost?

Repairs and maintenance cost
Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Loss due to accident/breakdown in the machinery

Discuss Question

Answer: Option A. -> Repairs and maintenance cost

Question 98. Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

Water supply
Running a control laboratory
Property protection
Medical services

Discuss Question

Answer: Option A. -> Water supply

Question 99. 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

Discuss Question

Answer: Option D. -> Profit

Question 100. 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

Discuss Question

Answer: Option D. -> Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary