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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