A. Repairs and maintenance cost
B. Loss due to obsolescence of the equipment
C. Loss due to decrease in the demand of product
D. Loss due to accident/breakdown in the machinery
Related Mcqs:
- 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 - Annual depreciation cost are not constant when, the _____________ method of depreciation calculation is used ?
A. Straight line
B. Sinking fund
C. Present worth
D. Declining balance - 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 - The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?
A. Initial cost
B. Book value at the end of (n – 1)th year
C. Depreciation during the (n – 1)th year
D. Difference between initial cost and salvage value - A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs______________?
A. 300
B. 600
C. 800
D. 1000 - A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?
A. 40,096
B. 43,196
C. 53,196
D. 60,196 - Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?
A. Multiple straight line method
B. Sinking fund method
C. Declining balance method
D. Sum of the years digit method - Out of the following, the depreciation calculated by the _____________ method is the maximum?
A. Diminishing balance
B. Straight line
C. Sum of the years digit
D. Sinking fund - 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 - Functional depreciation of an equipment is the measure of decrease in its value due to its _________________?
A. Ageing
B. Wear and tear
C. Obsolescence
D. Breakdown or accident
