Related Mcqs:

1. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to_________________?

   A. 0.1
   B. 0.6
   C. 0.2
   D. 0.8

2. 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

3. ‘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

4. Scheduling provides information about the_________________?

   A. Proper utilisation of machines
   B. Means to minimise idle time for machines
   C. Time of completion of job
   D. Time of starting of job and also about how much work should be completed during a
   particular period

5. The ‘total capital investment’ for a chemical process plant comprises of the fixed capital investment and the_________________?

   A. Overhead cost
   B. Working capital
   C. Indirect production cost
   D. Direct production cost

6. 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

7. ‘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

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. 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.

10. The payback method for the measurement of return on investment___________________?

    A. Gives a correct picture of profitability
    B. Underemphasises liquidity
    C. Does not measure the discounted rate of return
    D. Takes into account the cash inflows after the recovery of investments