MCQOPTIONS
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MCQOPTIONS
This section includes 82 Mcqs, each offering curated multiple-choice questions to sharpen your Chemical Engineering knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
In which city is the head office of the Insurance Regulatory and Development Authority of India (IRDAI) situated? |
| A. | Shimla |
| B. | Kolkata |
| C. | Chandigarh |
| D. | Hyderabad |
| Answer» E. | |
| 2. |
Cost of instrumentation in a modern chemical plant ranges from __________ percent of the total plant cost. |
| A. | 5 to 10 |
| B. | 20 to 30 |
| C. | 40 to 50 |
| D. | 60 to 70 |
| Answer» C. 40 to 50 | |
| 3. |
Scheduling provides information about the |
| A. | Proper utilisation of machines |
| B. | Means to minimise idle time for machines |
| C. | Time of completion of job |
| D. | Time of starting of job and also about how much work should be completed during a particular period |
| Answer» E. | |
| 4. |
In financial accounting of a chemical plant, which of the following relationship is invalid? |
| A. | Assets = equities |
| B. | Assets = liabilities + net worth |
| C. | Total income = costs + profits |
| D. | Assets = capital |
| Answer» E. | |
| 5. |
'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 |
| Answer» C. Cost of piping | |
| 6. |
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 × (index value at present/ index value at time 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» B. Process instruments and control | |
| 7. |
In a manufacturing industry, breakeven point occurs, when the |
| A. | Total annual rate of production equals the assigned value |
| B. | Total annual product cost equals the total annual sales |
| C. | Annual profit equals the expected value |
| D. | Annual sales equals the fixed cost |
| Answer» C. Annual profit equals the expected value | |
| 8. |
_________ of depreciation calculation does not take into account the interest on investments |
| A. | Present worth method |
| B. | Sinking fund method |
| C. | Sum of the years-digits method |
| D. | All (A), (B) and (C) |
| Answer» D. All (A), (B) and (C) | |
| 9. |
Gross earning is equal to the total income minus |
| A. | Total product cost |
| B. | Fixed cost |
| C. | Income tax |
| D. | None of these |
| Answer» B. Fixed cost | |
| 10. |
Depreciation is __________ in profit with time. |
| A. | Decrease |
| B. | Increase |
| C. | No change |
| D. | None of these |
| Answer» B. Increase | |
| 11. |
In an ordinary chemical plant, electrical installation cost may be about |
| A. | 10-15% of purchased equipment cost |
| B. | 3-10% of fixed capital investment |
| C. | Either (A) or (B) |
| D. | Neither (A) nor (B) |
| Answer» D. Neither (A) nor (B) | |
| 12. |
Effluent treatment cost in a chemical plant is categorised as the __________ cost. |
| A. | Fixed |
| B. | Overhead |
| C. | Utilities |
| D. | Capital |
| Answer» D. Capital | |
| 13. |
Which of the following is not a component of working capital? |
| A. | Raw materials is stock |
| B. | Finished products in stock |
| C. | Transportation facilities |
| D. | Semi-finished products in the process |
| Answer» D. Semi-finished products in the process | |
| 14. |
Functional depreciation of an equipment is the measure of decrease in its value due to its |
| A. | Ageing |
| B. | Wear and tear |
| C. | Obsolescence |
| D. | Breakdown or accident |
| Answer» D. Breakdown or accident | |
| 15. |
Personnel working in the market research group is responsible for the job of |
| A. | Equipment selection |
| B. | Product evaluation |
| C. | Equipment design |
| D. | Cost estimation |
| Answer» C. Equipment design | |
| 16. |
Manufacturing cost in a chemical company does not include the |
| A. | Fixed charges |
| B. | Plant overheads |
| C. | Direct products cost |
| D. | Administrative expenses |
| Answer» E. | |
| 17. |
_________ of depreciation calculation accounts for the interest on investment. |
| A. | Straight line method |
| B. | Declining balance |
| C. | Both (A) and (B) |
| D. | Neither (A) nor (B) |
| Answer» E. | |
| 18. |
Total product cost of a chemical plant does not include the __________ cost. |
| A. | Market survey |
| B. | Operating labour, supervision and supplies |
| C. | Overhead and utilities |
| D. | Depreciation, property tax and insurance |
| Answer» B. Operating labour, supervision and supplies | |
| 19. |
The payback method for the measurement of return on investment |
| A. | Gives a correct picture of profitability |
| B. | Underemphasises liquidity |
| C. | Does not measure the discounted rate of return |
| D. | Takes into account the cash inflows after the recovery of investments |
| Answer» D. Takes into account the cash inflows after the recovery of investments | |
| 20. |
Nominal and effective interest rates are equal, when the interest is compounded |
| A. | Quarterly |
| B. | Semi-annually |
| C. | Annually |
| D. | In no case, they are equal |
| Answer» D. In no case, they are equal | |
| 21. |
Which of the following is not a component of the fixed capital for a chemical plant facility? |
| A. | Raw materials inventory |
| B. | Utilities plants |
| C. | Process equipment |
| D. | Emergency facilities |
| Answer» B. Utilities plants | |
| 22. |
The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is |
| A. | 15% |
| B. | 10% |
| C. | 1.5% |
| D. | 150% |
| Answer» D. 150% | |
| 23. |
Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used. |
| A. | Straight line |
| B. | Sinking fund |
| C. | Present worth |
| D. | Declining balance |
| Answer» E. | |
| 24. |
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» C. Indirect production cost | |
| 25. |
Annual depreciation costs are constant, when the __________ method of depreciation calculation is used. |
| A. | Declining balance |
| B. | Straight line |
| C. | Sum of the years digit |
| D. | None of these |
| Answer» C. Sum of the years digit | |
| 26. |
A present sum of Rs. 100 at the end of one year, with half yearly rate of interest at 10%, will be Rs |
| A. | 121 |
| B. | 110 |
| C. | 97 |
| D. | 91 |
| Answer» B. 110 | |
| 27. |
Which of the following is the costliest material of construction used in pressure vessel construction? |
| A. | Low alloy steel |
| B. | Lead |
| C. | Titanium |
| D. | High alloy steel |
| Answer» D. High alloy steel | |
| 28. |
Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method? |
| A. | Multiple straight line method |
| B. | Sinking fund method |
| C. | Declining balance method |
| D. | Sum of the years digit method |
| Answer» C. Declining balance method | |
| 29. |
__________ method for profitability evaluation of a project does not account for investment cost due to land. |
| A. | Net present worth |
| B. | Pay out period |
| C. | Discounted cash flow |
| D. | Rate of return on investment |
| Answer» C. Discounted cash flow | |
| 30. |
Effective and nominal interest rates are equal, when the interest is compounded |
| A. | Annually |
| B. | Fortnightly |
| C. | Monthly |
| D. | Half-yearly |
| Answer» B. Fortnightly | |
| 31. |
Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to __________ percent in case of seasonal products manufacturing plant. |
| A. | 30 |
| B. | 50 |
| C. | 75 |
| D. | 95 |
| Answer» C. 75 | |
| 32. |
In a chemical process plant, the total product cost comprises of manufacturing cost and the |
| A. | General expenses |
| B. | Overhead cost |
| C. | R & D cost |
| D. | None of these |
| Answer» B. Overhead cost | |
| 33. |
Which of the following elements is not included in the scope of market analysis? |
| A. | Competition from other manufactures |
| B. | Product distribution |
| C. | Opportunities |
| D. | Economics |
| Answer» E. | |
| 34. |
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 |
| B. | Net working capital |
| C. | Current ratio |
| D. | Liquids assets |
| Answer» C. Current ratio | |
| 35. |
Equipment installation cost in a chemical process plant ranges from __________ percent of the purchased equipment cost. |
| A. | 10 to 20 |
| B. | 35 to 45 |
| C. | 55 to 65 |
| D. | 70 to 80 |
| Answer» C. 55 to 65 | |
| 36. |
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 |
| Answer» B. And plant overhead cost | |
| 37. |
If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent |
| A. | 10 |
| B. | 20 |
| C. | > 20 |
| D. | < 20 |
| Answer» D. < 20 | |
| 38. |
Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A. |
| A. | 15 |
| B. | 35 |
| C. | 55 |
| D. | 75 |
| Answer» C. 55 | |
| 39. |
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to th |
| A. | Initial cost |
| B. | Book value at the end of (n - 1)th year |
| C. | Depreciation during the (n - 1)th year |
| D. | Difference between initial cost and salvage value |
| Answer» C. Depreciation during the (n - 1)th year | |
| 40. |
The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio |
| A. | Cash reserve |
| B. | Capital |
| C. | Turnover |
| D. | Investment |
| Answer» D. Investment | |
| 41. |
Utilities cost in the operation of chemical process plant comes under the |
| A. | Plant overhead cost |
| B. | Fixed charges |
| C. | Direct production cost |
| D. | General expenses |
| Answer» D. General expenses | |
| 42. |
Generally, income taxes are based on the |
| A. | Total income |
| B. | Gross earning |
| C. | Total product cost |
| D. | Fixed cost |
| Answer» C. Total product cost | |
| 43. |
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. | Remain constant |
| Answer» B. Increases | |
| 44. |
'Utilities' in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from __________ percent of the total product cost. |
| A. | 1 to 5 |
| B. | 10 to 20 |
| C. | 25 to 35 |
| D. | 35 to 45 |
| Answer» C. 25 to 35 | |
| 45. |
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 |
| A. | Manufacturing cost |
| B. | Depreciation by sinking fund method |
| C. | Discrete compound interest |
| D. | Cash ratio |
| Answer» C. Discrete compound interest | |
| 46. |
Plant-Economics For a given fluid, as the pipe diameter increases, the pumping cost |
| A. | Decreases |
| B. | Increases |
| C. | Remains the same |
| D. | May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian |
| Answer» B. Increases | |
| 47. |
The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal) |
| A. | p.i.n. |
| B. | p(1 + i.n) |
| C. | p(1 + i)n |
| D. | p(1 - i.n) |
| Answer» B. p(1 + i.n) | |
| 48. |
Construction expenses are roughly __________ percent of the total direct cost of the plant. |
| A. | 2 |
| B. | 10 |
| C. | 30 |
| D. | 50 |
| Answer» C. 30 | |
| 49. |
'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from |
| A. | 1.2 to 1.4 |
| B. | 2.5 to 2.7 |
| C. | 4.2 to 4.4 |
| D. | 6.2 to 6.4 |
| Answer» D. 6.2 to 6.4 | |
| 50. |
Optimum economic pipe diameter for fluid is determined by the |
| A. | Viscosity of the fluid |
| B. | Density of the fluid |
| C. | Total cost considerations (pumping cost plus fixed cost of the pipe) |
| D. | None of these |
| Answer» D. None of these | |