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

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bWarehousing

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cLegal fees

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dCustomer service

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View Answer Legal fees

____________ taxes are based on gross earnings ?


aProperty

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bExcise

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cIncome

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dCapital gain

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View Answer Income

Operating profit of a chemical plant is equal to___________________?


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

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bProfit after tax plus depreciation

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cNet profit + tax

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dProfit after tax

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


aMore

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bLess

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cSame

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dNo

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View Answer More

Depreciation________________?


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

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

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

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dAll A, B. and C.

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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

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bEquipment installation cost

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cCost for piping

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dEquipment insulation cost

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


aBerl saddles

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bRaschig rings

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cPall rings

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dIntalox saddles

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View Answer Berl saddles

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


a10 to 20

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b20 to 40

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c45 to 60

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d65 to 75

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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

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b13

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c22

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d34

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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

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b43,196

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c53,196

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d60,196

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View Answer 60,196

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