MCQOPTIONS
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MCQOPTIONS
This section includes 101 Mcqs, each offering curated multiple-choice questions to sharpen your Chemical Engineering knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Gantt chart (or Bar chart) is helpful in |
| A. | efficient utilisation of manpower and machines. |
| B. | preparing production schedule. |
| C. | efficient despatching of products. |
| D. | inventory control. |
| Answer» C. efficient despatching of products. | |
| 52. |
A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant. |
| A. | current asset |
| B. | current liability |
| C. | long term debt |
| D. | profit |
| Answer» E. | |
| 53. |
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 |
| Answer» C. indirect production cost | |
| 54. |
Which of the following is the costliest source of getting hydrogen on commercial scale for the manufacture of nitrogeneous fertiliser ? |
| A. | Coal gasification |
| B. | Steam reforming of naphtha |
| C. | Alectrolysis of water |
| D. | Coke oven gas |
| Answer» D. Coke oven gas | |
| 55. |
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). |
| Answer» D. neither (a) nor (b). | |
| 56. |
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. |
| Answer» C. depreciation during the (n - 1)th year. | |
| 57. |
Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A. |
| A. | 15 |
| B. | 35 |
| C. | 55 |
| D. | 75 |
| Answer» C. 55 | |
| 58. |
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. |
| Answer» E. | |
| 59. |
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as |
| A. | perpetuity |
| B. | capital charge factor |
| C. | annuity |
| D. | future worth |
| Answer» D. future worth | |
| 60. |
Which of the following is the cheaptest material of construction for the storage of sodium hydroxide upto a concentration of 75% ? |
| A. | Stainless steel |
| B. | Plain carbon steel |
| C. | Nickel |
| D. | Copper |
| Answer» C. Nickel | |
| 61. |
In a manufacturing industry, break even point occurs, when the |
| A. | total annual rate of production equals the assigned value. |
| B. | total annual product cost equals the total annual sales. |
| C. | annual profit equals the expected value. |
| D. | annual sales equals the fixed cost. |
| Answer» C. annual profit equals the expected value. | |
| 62. |
__________ taxes are based on gross earnings. |
| A. | Property |
| B. | Excise |
| C. | Income |
| D. | Capital gain |
| Answer» D. Capital gain | |
| 63. |
The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices. |
| A. | one |
| B. | three |
| C. | six |
| D. | twelve |
| Answer» B. three | |
| 64. |
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. |
| Answer» D. none of these. | |
| 65. |
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 |
| Answer» C. 40 to 50 | |
| 66. |
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 |
| Answer» C. sum of the years digit | |
| 67. |
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) |
| Answer» B. p(1 + i.n) | |
| 68. |
In which of the electric power generation system, the operating cost is minimum ? |
| A. | Thermal |
| B. | Nuclear |
| C. | Hydroelectric |
| D. | Fast breeder reactor |
| Answer» D. Fast breeder reactor | |
| 69. |
A shareholder has __________ say in the affairs of company management compared to a debenture holder. |
| A. | more |
| B. | less |
| C. | same |
| D. | no |
| Answer» B. less | |
| 70. |
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. |
| Answer» D. Customer service. | |
| 71. |
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 |
| Answer» E. | |
| 72. |
Which of the following is the costliest material of construction used in pressure vessel construction ? |
| A. | Low alloy steel |
| B. | Lead |
| C. | Titanium |
| D. | High alloy steel |
| Answer» D. High alloy steel | |
| 73. |
__________ of depreciation calculation accounts for the interest on investement. |
| A. | Straight line method |
| B. | Declining balance |
| C. | both (a) and (b) |
| D. | neither (a) nor (b). |
| Answer» E. | |
| 74. |
For a typical project, the cumulative cash flow is zero at the |
| A. | end of the project life. |
| B. | break even point. |
| C. | start up. |
| D. | end of the design stage. |
| Answer» C. start up. | |
| 75. |
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. | 40096 |
| B. | 43196 |
| C. | 53196 |
| D. | 60196 |
| Answer» E. | |
| 76. |
Which of the following relationship is not correct is case of a chemical process plant ? |
| A. | Manufacturing cost = direct product cost + fixed charges + plant overhead costs |
| B. | General expenses = administrative expenses + distribution & marketing expenses |
| C. | Total product cost = manufacturing cost + general expenses |
| D. | Total product cost = direct production cost + plant overhead cost. |
| Answer» E. | |
| 77. |
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. |
| Answer» E. | |
| 78. |
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 |
| Answer» C. 75 | |
| 79. |
Which of the following is not a component of the fixed capital for a chemical plant facility? |
| A. | Raw materials inventory. |
| B. | Utilities plants. |
| C. | Process equipment. |
| D. | Emergency facilities. |
| Answer» B. Utilities plants. | |
| 80. |
Gross earning is equal to the total income minus |
| A. | total product cost |
| B. | fixed cost |
| C. | income tax |
| D. | none of these |
| Answer» B. fixed cost | |
| 81. |
Personnel working in the market research group is reponsible for the job of |
| A. | equipment selection. |
| B. | product evaluation. |
| C. | equipment design. |
| D. | cost estimation. |
| Answer» C. equipment design. | |
| 82. |
The amount of compounded interest during 'n' interest periods is |
| A. | p[(1+i)n-1)] |
| B. | p(1 + i)n |
| C. | p(1 - i)n |
| D. | p(1 + in) |
| Answer» B. p(1 + i)n | |
| 83. |
For a given fluid, as the pipe diameter increases, the pumping cost |
| A. | decreases. |
| B. | increases. |
| C. | remains the same. |
| D. | may increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian. |
| Answer» B. increases. | |
| 84. |
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. | 0.15 |
| B. | 0.1 |
| C. | 0.015 |
| D. | 1.5 |
| Answer» D. 1.5 | |
| 85. |
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 |
| Answer» C. Declining balance method | |
| 86. |
Cost incurred towards __________ in a chemical plant is a component of the utilities cost. |
| A. | water supply |
| B. | running a control laboratory |
| C. | property protection |
| D. | medical services |
| Answer» B. running a control laboratory | |
| 87. |
Which of the following is a component of working capital investment ? |
| A. | Utilities plants. |
| B. | Maintenance and repair inventory. |
| C. | Process equipments. |
| D. | Depreciation. |
| Answer» C. Process equipments. | |
| 88. |
With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project |
| A. | decreases |
| B. | increases |
| C. | increases linearly |
| D. | remains constant |
| Answer» B. increases | |
| 89. |
Construction expenses are roughly __________ percent of the total direct cost of the plant. |
| A. | 2 |
| B. | 10 |
| C. | 30 |
| D. | 50 |
| Answer» C. 30 | |
| 90. |
'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be |
| A. | |
| B. | |
| C. | |
| D. | |
| Answer» E. | |
| 91. |
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 |
| Answer» D. 1000 | |
| 92. |
Which of the following is not a component of the working capital for a chemical process plant ? |
| A. | Product inventory. |
| B. | In-process inventory. |
| C. | Minimum cash reserve. |
| D. | Storage facilities. |
| Answer» E. | |
| 93. |
Which of the following is not a component of depreciation cost ? |
| 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. |
| Answer» B. Loss due to obsolescence of the equipment. | |
| 94. |
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost. |
| A. | 10 to 20 |
| B. | 35 to 45 |
| C. | 55 to 65 |
| D. | 70 to 80 |
| Answer» C. 55 to 65 | |
| 95. |
If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is |
| A. | |
| B. | |
| C. | R(1 + i)n |
| D. | R/(1 + i)n |
| Answer» C. R(1 + i)n | |
| 96. |
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 |
| Answer» D. < 20 | |
| 97. |
__________ method for profitability evaluation of a project does not account for investment cost due to land. |
| A. | Net present worth |
| B. | Pay out period |
| C. | Discounted cash flow |
| D. | Rate of return on investment |
| Answer» C. Discounted cash flow | |
| 98. |
'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. | l to 5 |
| B. | 10 to 20 |
| C. | 25 to 35 |
| D. | 35 to 45 |
| Answer» C. 25 to 35 | |
| 99. |
The ratio of working capital to total capital investment for most chemical plants (except for non-seasonal based products) is in the range of __________ percent. |
| A. | 0.1 to 1 |
| B. | 1 to 2 |
| C. | 10 to 20 |
| D. | 50 to 60 |
| Answer» D. 50 to 60 | |
| 100. |
Accumulated sum at the end of 5 years, if Rs. 10000 is invested now at 10% interest per annum on a compound basis is Rs. |
| A. | 15000 |
| B. | 16105 |
| C. | 18105 |
| D. | 12500 |
| Answer» C. 18105 | |