1000+ Chemical Engineering Plant Economics Objective Questions Pdf - 1
Question: 1
Generally, income taxes are based on the
(A) fixed cost
(B) total product cost
(C) gross earning
(D) total income
Ans: C
gross earning
Question: 2
Which of the following is not a component of the working capital for a chemical process plant?
(A) storage facilities
(B) minimum cash reserve
(C) in-process inventory
(D) product inventory
Ans: A
storage facilities
Question: 3
The depreciation during the year ‘n’ in diminishing balance method of depreciation calculation, is calculated by multiplexing a fixed percentage ‘N’ to the
(A) difference between initial cost and salvage value
(B) depreciation during (n – 1)th year
(C) book value at the end of (n – 1)th year
(D) initial cost
Ans: C
book value at the end of (n – 1)th year
Question: 4
Which of the following is not a financial indicator?
(A) return on investment (ROI)
(B) net present value (NPV)
(C) internal rate of return (IRR)
(D) critical path method (CPM)
Ans: D
critical path method (CPM)
Question: 5
Manufacturing cost in a chemical company does not include the
(A) administrative expenses
(B) direct produced cost
(C) fixed charges
(D) plant overheads
Ans: A
administrative expenses
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