9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-1 section-2

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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Section 2 (https://www.examveda.com/chemical-engineering/practice-mcq-question-on-chemical-engineering-plant-economics/?section=2)

1. A shareholder has __________ say in the affairs of company management compared to a debenture holder.

A. More

B. Less

C. Same

D. No 

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-1 section-2

2. Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the
cost of similar plant at some time in the past is known.
The present cost of the plant = original cost x (index value/(index value at original cost was obtained)
The most major component of this cost index is

A. Fabricated equipment and machinery

B. Process instruments and control

C. Pumps and compressor

D. Electrical equipments and material

Answer & Solution

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3. A balance sheet for an industrial concern shows

A. The financial condition at any given time

B. Only current assets

C. Only fixed assets

D. Only current and fixed assets

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4. Pick out the wrong statement.

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-1 section-2

A. Gross revenue is that total amount of capital received as a result of the sale of goods or service

B. Net revenue is the total profit remaining after deducting all costs excluding taxes

C. The ratio of immediately available cash to the total current liabilities is known as the cash ratio

D. Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among
total income, costs & profit over the time interval

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5. Effluent treatment cost in a chemical plant is categorised as the __________ cost.

A. Fixed

B. Overhead

C. Utilities

D. Capital

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