40 TOP CHEMICAL ENGINEERING PLANT ECONOMICS Online Test – Multiple Choice Questions and Answers

1. An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the

 
 
 
 

2. A shareholder has __________ say in the affairs of company management compared to a debenture holder

 
 
 
 

3. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to

 
 
 
 

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

 
 
 
 

5. A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

 
 
 
 

6. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs

 
 
 
 

7. Pick out the wrong statement

 
 
 
 

8. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

 
 
 
 

9. Total product cost of a chemical plant does not include the __________ cost

 
 
 
 

10. Effluent treatment cost in a chemical plant is categorised as the __________ cost

 
 
 
 

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