9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-5 section-2

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Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering
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21. Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant
and manufacturing facilities plus the working capital for operation of the facilities. Which of the following
components of fixed capital investment requires minimum percentage of it?

A. Electrical installation cost

B. Equipment installation cost


C. Cost for piping

D. Equipment insulation cost

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22. __________ taxes are based on gross earnings.

A. Property

B. Excise

C. Income

D. Capital gain

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23. Break-even point is the point of intersection of

A. Fixed cost and total cost

B. Total cost and sales revenue

C. Fixed cost and sales revenue

D. None of these

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24. The __________ of a chemical company can be obtained directly from the balance sheet as the difference between
current assets and current liabilities.


A. Cash ratio

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9/6/2019 Chemical Engineering Plant Economics MCQ Questions & Answers | Chemical Engineering Page-5 section-2

B. Net working capital

C. Current ratio

D. Liquids assets

Answer & Solution

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25. Gantt chart (or Bar chart) is helpful in

A. Efficient utilisation of manpower and machines

B. Preparing production schedule

C. Efficient despatching of products

D. Inventory control

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