9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-7 section-2

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
Home (https://www.examveda.com/) / Chemical Engineering (https://www.examveda.com/mcq-question-on-chemical-engineering/) / Chemical Engineering Plant Economics

Section 1 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=1)

Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=2)

31. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of
the total product cost for a chemical plant.

A. Overhead cost

B. Fixed expenses

C. General expenses

D. Direct production cost

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Answer & Solution

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32. Pick out the wrong statement.

A. Gross margin = net income - net expenditure

B. Net sales realisation (NSR) = Gross sales - selling expenses

C. At break even point, NSR is more than the total production cost

D. Net profit = Gross margin - depreciation - interest

Answer & Solution Discuss in Board (https://www.examveda.com/pick-out-the-wrong-statement-65981) Save for Later

33. 'Six-tenth factor' rule is used for estimating the

A. Equipment installation cost

B. Equipment cost by scaling

C. Cost of piping

D. Utilities cost

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34. 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

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 9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-7 section-2

A. Manufacturing cost

B. Depreciation by sinking fund method

C. Discrete compound interest

D. Cash ratio

Answer & Solution

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accumulate-at-a-65983)

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35. The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the

A. Overhead cost

B. Working capital

C. Indirect production cost

D. Direct production cost

Answer & Solution Discuss in Board (https://www.examveda.com/the-total-capital-investment-for-a-chemical-process-plant-comprises-of-the-fixed-capital-investment-and-the-65984)

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