Related Mcqs:

1. 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____________________?

   A. Fabricated equipment and machinery
   B. Process instruments and control
   C. Pumps and compressor
   D. Electrical equipments and material

2. ‘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

3. 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

4. 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

5. 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

6. Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

   A. Electrical installation cost
   B. Equipment installation cost
   C. Cost for piping
   D. Equipment insulation cost

7. Fixed charges for a chemical plant does not include the____________________?

   A. Interest on borrowed money
   B. Rent of land and buildings
   C. Property tax, insurance and depreciation
   D. Repair and maintenance charges

8. Which of the following does not come under the sales expenses for a product of a chemical plant ?

   A. Advertising
   B. Warehousing
   C. Legal fees
   D. Customer service

9. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to ______________ percent in case of seasonal products manufacturing plant?

   A. 30
   B. 50
   C. 75
   D. 95

10. Manufacturing cost in a chemical company does not include the____________________?

    A. Fixed charges
    B. Plant overheads
    C. Direct products cost
    D. Administrative expenses