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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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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Cost incurred towards __________ in a chemical plant is a component of the utilities cost.
A. Water supply
B. Running a control laboratory
C. Property protection
D. Medical services
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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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Pick out the wrong statement.
A. Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
B. A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
C. Turn over ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
D. Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
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Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
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The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal)
A. P.i.n.
B. P(1 + i.n)
C. P(1 + i)n
D. P(1 - i.n)
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Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs.
A. 15000
B. 16105
C. 18105
D. 12500
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'P' is the investment made on an equipment, 'S' is its salvage value and 'n' is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be
A. n P − S
B. 1 − ( S P ) m 1
C. n m ⋅ ( P − S )
D. n ( n + 1 ) 2 ( n − m + 1 ) ⋅ ( P − S )
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Profit is equal to revenue minus
A. Book value
B. Total cost
C. Operating cost
D. None of these
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A shareholder has __________ say in the affairs of company management compared to a debenture holder.
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Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
The present cost of the plant = original cost × index value at time original cost was obtained index value at present .
The most major component of this cost index is
A. Fabricated equipment and machinery
B. Process instruments and control
C. Pumps and compressor
D. Electrical equipments and material
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A balance sheet for an industrial concern shows
A. The financial condition at any given time
B. Only current assets
C. Only fixed assets
D. Only current and fixed assets
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Pick out the wrong statement.
A. Gross revenue is that total amount of capital received as a result of the sale of goods or service
B. Net revenue is the total profit remaining after deducting all costs excluding taxes
C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio
D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval
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Effluent treatment cost in a chemical plant is categorised as the __________ cost.
A. Fixed
B. Overhead
C. Utilities
D. Capital
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Construction expenses are roughly __________ percent of the total direct cost of the plant.
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In financial accounting of a chemical plant, which of the following relationship is invalid?
A. Assets = equities
B. Assets = liabilities + net worth
C. Total income = costs + profits
D. Assets = capital
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Personnel working in the market research group is reponsible for the job of
A. Equipment selection
B. Product evaluation
C. Equipment design
D. Cost estimation
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Payback period
A. And economic life of a project are the same
B. Is the length of time over which the earnings on a project equals the investment
C. Is affected by the variation in earnings after the recovery of the investment
D. All of the above
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Pick out the wrong statement.
A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)
B. Return on equity = profit after tax/net worth
C. Working capital turn over ratio = sales/net working capital
D. Total cost of production is more than net sales realisation (NSR) at break even point
Select an option to see the answer and solution.