A. The annual depreciation rate for machinery and equipments in a chemical process plant is
about 10% of the fixed capital investment
B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital
investment
D. In a chemical industry, research and development cost amounts to about 15% of net sales
realisation (NSR)
Related Mcqs:
- 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 turnover ratio = sales/net working capital
D. Total cost of production is more than net sales realisation (NSR) at breakeven point - 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 - Pick out the wrong statement ?
A. Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of
owner’s contribution i.e., debt-equity ratio = total debt/net worth
B. Return on investment (ROI) is the ratio of profit before interest & tax and capital employed
(i.e. net worth + total debt)
C. Working capital = current assets + current liability
D. Turn over = opening stock + production closing stock - 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 - Pick out the correct statement ?
A. Difference between income and expense is termed as gross revenue
B. Unamortised cost is the difference between the original cost of a property and all the
depreciation charges made to date
C. Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the
investment
D. Scrap value is the net amount of money obtainable from the sale of used property over and
above any charges involved in its removal & sale - Optimum economic pipe diameter for fluid is determined by the___________________?
A. Viscosity of the fluid
B. Density of the fluid
C. Total cost considerations (pumping cost plus fixed cost of the pipe)
D. None of these - Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?
A. Declining balance
B. Straight line
C. Sum of the years digit
D. None of these - Depreciation is ____________________ in profit with time?
A. Decrease
B. Increase
C. No change
D. None of these - Which of the following elements is not included in the scope of market analysis ?
A. Competition from other manufactures
B. Product distribution
C. Opportunities
D. Economics - Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about _____________ percent of the fixed capital investment ?
A. 4
B. 13
C. 22
D. 34
