Plant Design & Economics for Chemical Engineering - Set 06 - ObjectiveBooks
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Plant Design & Economics for Chemical Engineering - Set 06

Practice Test: Question Set - 06

1. The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the
    (A) Initial cost
    (B) Book value at the end of (n - 1)th year
    (C) Depreciation during the (n - 1)th year
    (D) Difference between initial cost and salvage value

2. Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
    (A) 15
    (B) 35
    (C) 55
    (D) 75

3. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
    (A) 10
    (B) 20
    (C) > 20
    (D) < 20

4. Factory manufacturing cost is the sum of the direct production cost
    (A) Fixed charges and plant overhead cost
    (B) And plant overhead cost
    (C) Plant overhead cost and administrative expenses
    (D) None of these

5. Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost.
    (A) 10 to 20
    (B) 35 to 45
    (C) 55 to 65
    (D) 70 to 80

6. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities.
    (A) Cash ratio
    (B) Net working capital
    (C) Current ratio
    (D) Liquids assets

7. Which of the following elements is not included in the scope of market analysis?
    (A) Competition from other manufactures
    (B) Product distribution
    (C) Opportunities
    (D) Economics

8. In a chemical process plant, the total product cost comprises of manufacturing cost and the
    (A) General expenses
    (B) Overhead cost
    (C) R & D cost
    (D) None of these

9. 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.
    (A) 30
    (B) 50
    (C) 75
    (D) 95

10. Effective and nominal interest rates are equal, when the interest is compounded
    (A) Annually
    (B) Fortnightly
    (C) Monthly
    (D) Half-yearly

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