Chemical Engineering Plant Economics Objective Questions - ObjectiveBooks

Chemical Engineering Plant Economics Objective Questions

Practice Test: Question Set - 10


1. Scheduling provides information about the

    (A) Proper utilization of machines
    (B) Means to minimize idle time for machines
    (C) Time of completion of job
    (D) Time of starting of job and also about how much work should be completed during a particular period

2. The amount of compounded interest during 'n' interest periods is

    (A) p[(1+i)n - 1)]
    (B) p(1 + i)n
    (C) p(1 - i)n
    (D) p(1 + in)

3. Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost.

    (A) 5 to 10
    (B) 20 to 30
    (C) 40 to 50
    (D) 60 to 70

4. Gantt chart (or Bar chart) is helpful in

    (A) Efficient utilization of manpower and machines
    (B) Preparing production schedule
    (C) Efficient dispatching of products
    (D) Inventory control

5. Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
    (A) Water supply
    (B) Running a control laboratory
    (C) Property protection
    (D) Medical services

6. The value of a property decreases __________ with time in straight line method of determining depreciation.

    (A) Linearly
    (B) Non-linearly
    (C) Exponentially
    (D) Logarithmically

7. Profit is equal to revenue minus

    (A) Book value
    (B) Total cost
    (C) Operating cost
    (D) None of these

8. Maximum production start up cost for making a chemical plant operational is about __________ percent of the fixed capital cost.

    (A) 1
    (B) 5
    (C) 10
    (D) 30

9. For a typical project, the cumulative cash flow is zero at the

    (A) End of the project life
    (B) Breakeven point
    (C) Start up
    (D) End of the design stage

10. Expenditure on research and development (R & D) is categorized as the __________, while making an estimate of the total product cost for a chemical plant.

    (A) Overhead cost
    (B) Fixed expenses
    (C) General expenses
    (D) Direct production cost

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