Chemical Engineering Plant Economics

31.Effluent treatment cost in a chemical plant is categorised as the _________ cost.

  1. Fixed
  2. Overhead
  3. Utilities
  4. Capital
Correct answer: (C)
Utilities

32.Equipment installation cost in a chemical process plant ranges from _________ percent of the purchased equipment cost.

  1. 10 to 20
  2. 35 to 45
  3. 55 to 65
  4. 70 to 80
Correct answer: (B)
35 to 45

33.Factory manufacturing cost is the sum of the direct production cost

  1. Fixed charges and plant overhead cost
  2. And plant overhead cost
  3. Plant overhead cost and administrative expenses
  4. None of these
Correct answer: (A)
Fixed charges and plant overhead cost

34.Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it?

  1. Electrical installation cost
  2. Equipment installation cost
  3. Cost for piping
  4. Equipment insulation cost
Correct answer: (D)
Equipment insulation cost

35.Fixed charges for a chemical plant does not include the

  1. Interest on borrowed money
  2. Rent of land and buildings
  3. Property tax, insurance and depreciation
  4. Repair and maintenance charges
Correct answer: (D)
Repair and maintenance charges

36.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

  1. 0.1
  2. 0.6
  3. 0.2
  4. 0.8
Correct answer: (B)
0.6

37.For a given fluid, as the pipe diameter increases, the pumping cost

  1. Decreases
  2. Increases
  3. Remains the same
  4. May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
Correct answer: (A)
Decreases

38.Functional depreciation of an equipment is the measure of decrease in its value due to its

  1. Ageing
  2. Wear and tear
  3. Obsolescence
  4. Breakdown or accident
Correct answer: (C)
Obsolescence

39.Generally, income taxes are based on the

  1. Total income
  2. Gross earning
  3. Total product cost
  4. Fixed cost
Correct answer: (B)
Gross earning

40.Gross earning is equal to the total income minus

  1. Total product cost
  2. Fixed cost
  3. Income tax
  4. None of these
Correct answer: (A)
Total product cost
Previous
Page 4 of 9
Next
Copyright © EngineeringMCQ.com