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

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

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

 
 
 
 

5. 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

 
 
 
 

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

 
 
 
 

8. Pick out the wrong statement

 
 
 
 

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

 
 
 
 

10. 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

 
 
 
 

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