Questions and answers for exam Preparation

MCQs

Total Questions : 398 | Page 39 of 40 pages

Question 381. 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?

n
n0.6
n0.4
√n

Discuss Question

Answer: Option B. -> n0.6
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 382. 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 ?

Electrical installation cost
Equipment installation cost
Cost for piping
Equipment insulation cost

Discuss Question

Answer: Option D. -> Equipment insulation cost
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 383. Purchased cost of equipments for a chemical process plant ranges from _____________ percent of the fixed capital investment?

10 to 20
20 to 40
45 to 60
65 to 75

Discuss Question

Answer: Option B. -> 20 to 40
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 384. Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about _____________ percent of the fixed capital investment ?

Discuss Question

Answer: Option B. -> 13
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 385. 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
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 386. Fixed charges for a chemical plant does not include the____________________?

Interest on borrowed money
Rent of land and buildings
Property tax, insurance and depreciation
Repair and maintenance charges

Discuss Question

Answer: Option D. -> Repair and maintenance charges
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 387. Depreciation________________?

Costs (on annual basis) are constant when the straight line method is used for its determination
Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
Does figure in the calculation of income tax liability on cash flows from an investment
All A, B. and C.

Discuss Question

Answer: Option D. -> All A, B. and C.
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 388. Operating profit of a chemical plant is equal to___________________?

Profit before interest and tax i.e., net profit + interest + tax
Profit after tax plus depreciation
Net profit + tax
Profit after tax

Discuss Question

Answer: Option A. -> Profit before interest and tax i.e., net profit + interest + tax
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 389. A balance sheet for an industrial concern shows ___________________?

The financial condition at any given time
Only current assets
Only fixed assets
Only current and fixed assets

Discuss Question

Answer: Option A. -> The financial condition at any given time
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

Question 390. 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)

Discuss Question

Answer: Option D. -> In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!