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

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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6. With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment
of a given project

A. Decreases

B. Increases

C. Increases linearly

D. Remains constant

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7. 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

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8. Which of the following is not a mathematical method for evaluation of profitability of a chemical process plant?

A. Cash reserve

B. Rate of return on investment

C. Payout period

D. Discounted cash flow based on full life performance

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9. In a chemical process plant, the total product cost comprises of manufacturing cost and the

A. General expenses

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

B. Overhead cost

C. R & D cost

D. None of these

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10. Factory manufacturing cost is the sum of the direct production cost

A. Fixed charges and plant overhead cost

B. And plant overhead cost

C. Plant overhead cost and administrative expenses

D. None of these

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Read More Section(Chemical Engineering Plant Economics)

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