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MCQs

Total Questions : 398 | Page 5 of 40 pages
Question 41. 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
  1.    Decreases
  2.    Increases
  3.    Increases linearly
  4.    Remains constant
 Discuss Question
Answer: Option A. -> Decreases
Question 42. Which of the following relationship is not correct is case of a chemical process plant?
  1.    Manufacturing cost = direct product cost + fixed charges + plant overhead costs
  2.    General expenses = administrative expenses + distribution & marketing expenses
  3.    Total product cost = manufacturing cost + general expenses
  4.    Total product cost = direct production cost + plant overhead cost
 Discuss Question
Answer: Option D. -> Total product cost = direct production cost + plant overhead cost
Question 43. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?
  1.    Cash reserve
  2.    Rate of return on investment
  3.    Payout period
  4.    Discounted cash flow based on full life performance
 Discuss Question
Answer: Option A. -> Cash reserve
Question 44. In a chemical process plant, the total product cost comprises of manufacturing cost and the
  1.    General expenses
  2.    Overhead cost
  3.    R & D cost
  4.    None of these
 Discuss Question
Answer: Option A. -> General expenses
Question 45. Factory manufacturing cost is the sum of the direct production cost
  1.    Fixed charges and plant overhead cost
  2.    And plant overhead cost
  3.    Plant overhead cost and administrative expenses
  4.    None of these
 Discuss Question
Answer: Option A. -> Fixed charges and plant overhead cost
Question 46. Utilities cost in the operation of chemical process plant comes under the
  1.    Plant overhead cost
  2.    Fixed charges
  3.    Direct production cost
  4.    General expenses
 Discuss Question
Answer: Option C. -> Direct production cost
Question 47. 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.
  1.    30
  2.    50
  3.    75
  4.    95
 Discuss Question
Answer: Option B. -> 50
Question 48. Which of the following does not come under the sales expenses for a product of a chemical plant?
  1.    Advertising
  2.    Warehousing
  3.    Legal fees
  4.    Customer service
 Discuss Question
Answer: Option C. -> Legal fees
Question 49. 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.
  1.    N
  2.    N0.6
  3.    N0.4
  4.    √n
 Discuss Question
Answer: Option B. -> N0.6
Question 50. 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
  1.    1000 (1 + 0.1/4)20
  2.    1000 (1 + 0.1)20
  3.    1000 (1 + 0.1/4)5
  4.    1000 (1 + 0.1/2)5
 Discuss Question
Answer: Option A. -> 1000 (1 + 0.1/4)20

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