A. Costs (on annual basis) are constant when the straight line method is used for its
determination
B. Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
C. Does figure in the calculation of income tax liability on cash flows from an investment
D. All A, B. and C.
Related Mcqs:
- In declining balance method of depreciation calculation, the _____________________?
A. Value of the asset decreases linearly with time
B. Annual cost of depreciation is same every year
C. Annual depreciation is the fixed percentage of the property value at the beginning of the
particular year
D. None of these - ‘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 - 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 - 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__________________?
A. 15%
B. 10%
C. 1.5%
D. 150% - In an ordinary chemical plant, electrical installation cost may be about ____________________?
A. 10-15% of purchased equipment cost
B. 3-10% of fixed capital investment
C. Either A. or B.
D. Neither A. nor B. - Manufacturing cost in a chemical company does not include the____________________?
A. Fixed charges
B. Plant overheads
C. Direct products cost
D. Administrative expenses - Pick out the wrong statement?
A. Gross margin = net income – net expenditure
B. Net sales realisation (NSR) = Gross sales – selling expenses
C. At breakeven point, NSR is more than the total production cost
D. Net profit = Gross margin – depreciation – interest - If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be ______________ percent ?
A. 10
B. 20
C. > 20
D. < 20 - 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) - Which of the following ceramic packing materials is the costliest of all ?
A. Berl saddles
B. Raschig rings
C. Pall rings
D. Intalox saddles
