MCQOPTIONS
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MCQOPTIONS
This section includes 71 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. |
Effective and nominal interest rates are equal, when the interest is compounded__________________? |
| A. | Annually |
| B. | Fortnightly |
| C. | Monthly |
| D. | Half-yearly |
| Answer» B. Fortnightly | |
| 52. |
Direct costs component of the fixed capital consists of _____________________? |
| A. | Contingencies |
| B. | Onsite and offsite costs |
| C. | Labour costs |
| D. | Raw material costs |
| Answer» C. Labour costs | |
| 53. |
Depreciation________________? |
| A. | Costs (on annual basis) are constant when the straight line method is used for its determination |
| B. | Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time |
| C. | Does figure in the calculation of income tax liability on cash flows from an investment |
| D. | All A, B. and C. |
| Answer» E. | |
| 54. |
Depreciation is ____________________ in profit with time? |
| A. | Decrease |
| B. | Increase |
| C. | No change |
| D. | None of these |
| Answer» B. Increase | |
| 55. |
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 |
| Answer» C. 22 | |
| 56. |
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 | |
| 57. |
Construction expenses are roughly _____________ percent of the total direct cost of the plant ? |
| A. | 2 |
| B. | 10 |
| C. | 30 |
| D. | 50 |
| Answer» C. 30 | |
| 58. |
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 |
| Answer» B. Process instruments and control | |
| 59. |
“Break-even point” is the point of intersection of_____________________? |
| A. | Fixed cost and total cost |
| B. | Total cost and sales revenue |
| C. | Fixed cost and sales revenue |
| D. | None of these |
| Answer» C. Fixed cost and sales revenue | |
| 60. |
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 | |
| 61. |
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. | |
| 62. |
An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be ________________? |
| A. | 1000 (1 + 0.1/4)20 |
| B. | 1000 (1 + 0.1)20 |
| C. | 1000 (1 + 0.1/4)5 |
| D. | 1000 (1 + 0.1/2)5 |
| Answer» B. 1000 (1 + 0.1)20 | |
| 63. |
An investment of Rs. 100 lakhs is to be made for construction of a plant, which will take two years to start production. The annual profit from the operation of the plant is Rs. 20 lakhs. What will be the payback time ? |
| A. | 5 years |
| B. | 7 years |
| C. | 12 years |
| D. | 10 years |
| Answer» C. 12 years | |
| 64. |
An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from the time of initial payment to the end of annuity term. Ordinary annuity is used in the calculation of the__________________? |
| A. | Manufacturing cost |
| B. | Depreciation by sinking fund method |
| C. | Discrete compound interest |
| D. | Cash ratio |
| Answer» C. Discrete compound interest | |
| 65. |
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 | |
| 66. |
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 |
| Answer» C. n0.4 | |
| 67. |
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 | |
| 68. |
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 | |
| 69. |
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 |
| Answer» E. | |
| 70. |
A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs ? |
| A. | 121 |
| B. | 110 |
| C. | 97 |
| D. | 91 |
| Answer» B. 110 | |
| 71. |
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 | |