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Chemical Engineering - Chemical Engineering Plant Economics

Exercise : Chemical Engineering Plant Economics - Section 2
11.
In financial accounting of a chemical plant, which of the following relationship is invalid?
Assets = equities
Assets = liabilities + net worth
Total income = costs + profits
Assets = capital.
Answer: Option
Explanation:
No answer description is available. Let's discuss.
12.
Depreciation
costs (on annual basis) are constant when the straight line method is used for its determination.
is the unavoidable loss in the value of the plant, equipment and materials with lapse in time.
does figure in the calculation of income tax liability on cash flows from an investment.
all (a), (b) and (c).
Answer: Option
Explanation:
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13.
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.
n
n0.6
n0.4
n
Answer: Option
Explanation:
No answer description is available. Let's discuss.
14.
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
manufacturing cost.
depreciation by sinking fund method.
discrete compound interest.
cash ratio.
Answer: Option
Explanation:
No answer description is available. Let's discuss.
15.
Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
0.1
0.6
0.2
0.8
Answer: Option
Explanation:
No answer description is available. Let's discuss.
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