Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 1

11. 

Which of the following is not a component of working capital ?

A. Raw materials is stock.
B. Finished products in stock.
C. Transportation facilities.
D. Semi-finished products in the process.

Answer: Option C

Explanation:

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12. 

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: Option C

Explanation:

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13. 

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: Option D

Explanation:

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14. 

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: Option A

Explanation:

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15. 

In which of the electric power generation system, the operating cost is minimum ?

A. Thermal
B. Nuclear
C. Hydroelectric
D. Fast breeder reactor

Answer: Option C

Explanation:

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