Chemical Engineering - Chemical Engineering Plant Economics

Exercise :: Chemical Engineering Plant Economics - Section 1

16. 

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: Option B

Explanation:

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17. 

Operating profit of a chemical plant is equal to

A. profit before interest and tax i.e., net profit + interest + tax
B. profit after tax plus depreciation
C. net profit + tax
D. profit after tax

Answer: Option A

Explanation:

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18. 

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: Option B

Explanation:

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19. 

Gross earning is equal to the total income minus

A. total product cost
B. fixed cost
C. income tax
D. none of these

Answer: Option A

Explanation:

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20. 

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: Option B

Explanation:

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