Chemical Engineering MCQs

Page No. 751

Which of the following does not come under the sales expenses for a product of a chemical plant ?


aAdvertising


bWarehousing


cLegal fees


dCustomer service


View Answer Legal fees

____________ taxes are based on gross earnings ?


aProperty


bExcise


cIncome


dCapital gain


View Answer Income

Operating profit of a chemical plant is equal to___________________?


aProfit before interest and tax i.e., net profit + interest + tax


bProfit after tax plus depreciation


cNet profit + tax


dProfit after tax



A shareholder has ______________ say in the affairs of company management compared to a debenture holder ?


aMore


bLess


cSame


dNo


View Answer More

Depreciation________________?


aCosts (on annual basis) are constant when the straight line method is used for its determination


bIs the unavoidable loss in the value of the plant, equipment and materials with lapse in time


cDoes figure in the calculation of income tax liability on cash flows from an investment


dAll A, B. and C.


View Answer All A, B. and C.

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 ?


aElectrical installation cost


bEquipment installation cost


cCost for piping


dEquipment insulation cost



Which of the following ceramic packing materials is the costliest of all ?


aBerl saddles


bRaschig rings


cPall rings


dIntalox saddles


View Answer Berl saddles

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


a10 to 20


b20 to 40


c45 to 60


d65 to 75


View Answer 20 to 40

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


a4


b13


c22


d34


View Answer 13

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?


a40,096


b43,196


c53,196


d60,196


View Answer 60,196

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