71.The payback method for the measurement of return on investment
Gives a correct picture of profitability
Underemphasises liquidity
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments
Correct answer: (C) Does not measure the discounted rate of return
72.The ratio of gross annual sales to the fixed capital investment is termed as the _________ ratio.
Cash reserve
Capital
Turnover
Investment
Correct answer: (C) Turnover
73.The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of _________ percent.
0.1 to 1
1 to 2
10 to 20
50 to 60
Correct answer: (C) 10 to 20
74.The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
15%
10%
1.5%
150%
Correct answer: (C) 1.5%
75.Total product cost of a chemical plant does not include the _________ cost.
Market survey
Operating labour, supervision and supplies
Overhead and utilities
Depreciation, property tax and insurance
Correct answer: (A) Market survey
76.Utilities cost in the operation of chemical process plant comes under the
Plant overhead cost
Fixed charges
Direct production cost
General expenses
Correct answer: (C) Direct production cost
77.Which of the following ceramic packing materials is the costliest of all?
Berl saddles
Raschig rings
Pall rings
Intalox saddles
Correct answer: (A) Berl saddles
78.Which of the following does not come under the sales expenses for a product of a chemical plant?
Advertising
Warehousing
Legal fees
Customer service
Correct answer: (C) Legal fees
79.Which of the following elements is not included in the scope of market analysis?
Competition from other manufactures
Product distribution
Opportunities
Economics
Correct answer: (D) Economics
80.Which of the following is not a component of depreciation cost?