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Chemical Engineering Plant Economics MCQs | Page - 5

Dear candidates you will find MCQ questions of Chemical Engineering Plant Economics here. Learn these questions and prepare yourself for coming examinations and interviews. You can check the right answer of any question by clicking on any option or by clicking view answer button.

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Q. 41) In a chemical process plant, the total product cost comprises of manufacturing cost and the

(A) General expenses
(B) Overhead cost
(C) R & D cost
(D) None of these
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Q. 42) Factory manufacturing cost is the sum of the direct production cost

(A) And plant overhead cost
(B) Plant overhead cost and administrative expenses
(C) Fixed charges and plant overhead cost
(D) None of these
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Q. 43) Manufacturing cost in a chemical company does not include the

(A) Fixed charges
(B) Plant overheads
(C) Direct products cost
(D) Administrative expenses
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Q. 44) Which of the following is not a component of depreciation cost?

(A) Repairs and maintenance cost
(B) Loss due to obsolescence of the equipment
(C) Loss due to decrease in the demand of product
(D) Loss due to accident/breakdown in the machinery
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Q. 45) Cost incurred towards __________ in a chemical plant is a component of the utilities cost.

(A) Running a control laboratory
(B) Water supply
(C) Medical services
(D) Property protection
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Q. 46) A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.

(A) Current asset
(B) Current liability
(C) Long term debt
(D) Profit
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Q. 47) Pick out the wrong statement.

(A) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
(B) Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
(C) A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
(D) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
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Ram Sharma • 178.09K Points
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Q. 48) Utilities cost in the operation of chemical process plant comes under the

(A) Plant overhead cost
(B) Fixed charges
(C) Direct production cost
(D) General expenses
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Q. 49) Which of the following does not come under the sales expenses for a product of a chemical plant?

(A) Advertising
(B) Warehousing
(C) Legal fees
(D) Customer service
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Q. 50) According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with times the capacity of the first unit is approximately equal to __________ times the cost of the initial unit.

(A) n
(B) n0.6
(C) n0.4
(D) n2
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