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Chemical Engineering - Chemical Engineering Plant Economics

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Exercise : Chemical Engineering Plant Economics - Section 1
1.
Direct costs component of the fixed capital consists of
contingencies
onsite and offsite costs
labour costs
raw material costs
Answer: Option
Explanation:
No answer description is available. Let's discuss.
2.
Out of the following, the depreciation calculated by the __________ method is the maximum.
diminishing balance
straight line
sum of the years digit
sinking fund
Answer: Option
Explanation:
No answer description is available. Let's discuss.
3.
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.
0.1 to 1
1 to 2
10 to 20
50 to 60
Answer: Option
Explanation:
No answer description is available. Let's discuss.
4.
Utilities cost in the operation of chemical process plant comes under the
plant overhead cost
fixed charges
direct production cost
general expenses
Answer: Option
Explanation:
No answer description is available. Let's discuss.
5.
Pick out the wrong statement.
The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment.
Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost.
Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment.
In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR).
Answer: Option
Explanation:
No answer description is available. Let's discuss.
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