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 present/ index value at time original cost was obtained). The most major component of this cost index is____________________?

Related Mcqs:

1. Cost of instrumentation in a modern chemical plant ranges from _____________________ percent of the total plant cost?

   A. 5 to 10
   B. 20 to 30
   C. 40 to 50
   D. 60 to 70

2. ‘Lang factor’ is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of ‘Lang factor’ for fixed capital investment, for a solid-fluid processing chemical plant ranges from ?

   A. 1.2 to 1.4
   B. 2.5 to 2.7
   C. 4.2 to 4.4
   D. 6.2 to 6.4

3. The economic life of a large chemical process plant as compared to a small chemical plant is_______________?

   A. Only slightly more
   B. Much more
   C. Slightly less
   D. Almost equal

4. ‘Utilities’ in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from _______________ percent of the total product cost?

   A. 1 to 5
   B. 10 to 20
   C. 25 to 35
   D. 35 to 45

5. 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. √n

6. Which of the following is not a component of the working capital for a chemical process plant ?

   A. Product inventory
   B. In-process inventory
   C. Minimum cash reserve
   D. Storage facilities

7. Which of the following is not a component of the fixed capital for a chemical plant facility ?

   A. Raw materials inventory
   B. Utilities plants
   C. Process equipment
   D. Emergency facilities

8. 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

9. Total product cost of a chemical plant does not include the ______________ cost?

   A. Market survey
   B. Operating labour, supervision and supplies
   C. Overhead and utilities
   D. Depreciation, property tax and insurance

10. Equipment installation cost in a chemical process plant ranges from _______________ percent of the purchased equipment cost ?

    A. 10 to 20
    B. 35 to 45
    C. 55 to 65
    D. 70 to 80