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MCQs

Total Questions : 398 | Page 3 of 40 pages
Question 21. 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?
  1.    Electrical installation cost
  2.    Equipment installation cost
  3.    Cost for piping
  4.    Equipment insulation cost
 Discuss Question
Answer: Option D. -> Equipment insulation cost
Question 22. Break-even point is the point of intersection of
  1.    Fixed cost and total cost
  2.    Total cost and sales revenue
  3.    Fixed cost and sales revenue
  4.    None of these
 Discuss Question
Answer: Option B. -> Total cost and sales revenue
Question 23. __________ taxes are based on gross earnings.
  1.    Property
  2.    Excise
  3.    Income
  4.    Capital gain
 Discuss Question
Answer: Option C. -> Income
Question 24. Gantt chart (or Bar chart) is helpful in
  1.    Efficient utilisation of manpower and machines
  2.    Preparing production schedule
  3.    Efficient despatching of products
  4.    Inventory control
 Discuss Question
Answer: Option B. -> Preparing production schedule
Question 25. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
  1.    Cash ratio
  2.    Net working capital
  3.    Current ratio
  4.    Liquids assets
 Discuss Question
Answer: Option B. -> Net working capital
Question 26. Optimum number of effects in a multiple effect evaporator is decided by the
  1.    Cost benefit analysis
  2.    Floor area availability
  3.    Terminal parameters
  4.    Evaporation capacity required
 Discuss Question
Answer: Option A. -> Cost benefit analysis
Question 27. Total product cost of a chemical plant does not include the __________ cost.
  1.    Market survey
  2.    Operating labour, supervision and supplies
  3.    Overhead and utilities
  4.    Depreciation, property tax and insur-rance
 Discuss Question
Answer: Option A. -> Market survey
Question 28. Which of the following elements is not included in the scope of market analysis?
  1.    Competition from other manufactures
  2.    Product distribution
  3.    Opportunities
  4.    Economics
 Discuss Question
Answer: Option D. -> Economics
Question 29. __________ of depreciation calculation does not take into account the interest on investments.
  1.    Present worth method
  2.    Sinking fund method
  3.    Sum of the years-digits method
  4.    All of the above
 Discuss Question
Answer: Option C. -> Sum of the years-digits method
Question 30. 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
  1.    R[((1 + i)n - 1)/i]
  2.    [((1 + i)n - 1)/i(1 + i)n]
  3.    R(1 + i)n
  4.    R/(1 + i)n
 Discuss Question
Answer: Option B. -> [((1 + i)n - 1)/i(1 + i)n]

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