All Free Chemical Engineering MCQs with Answers
Every Chemical Engineering question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
6,983 questions · page 327 of 350
- A. Total cost and sales revenue
- B. Fixed cost and total cost
- C. Fixed cost and sales revenue
- D. None of these
Explanation: At the break-even point, total revenue exactly equals total cost, so there is neither profit nor loss.
Correct answer: Total cost and sales revenue- A. 300
- B. 600
- C. 800
- D. 1000
Explanation: Straight-line depreciation is spread evenly over the depreciable amount: (5000 - 1000)/5 = Rs. 800 per year.
Correct answer: 800- A. 15000
- B. 16105
- C. 18105
- D. 12500
Explanation: For compound interest, the accumulated amount is P(1+i)^n = 10000(1.10)^5 = approximately Rs. 16,105. Simple interest would give only Rs.
Correct answer: 16105- A. Much more
- B. Only slightly more
- C. Slightly less
- D. Almost equal
Explanation: Large chemical plants usually have a much longer economic life because their high initial investment is spread over greater capacity and…
Correct answer: Much more- A. (P - S)/n
- B. [2 (n - m + 1)/n(n + 1)]. (P - S)
- C. (m/n) (P - S)
- D. 1 - (P/S)1/m
Explanation: In the sum-of-the-years'-digits method, the mth-year depreciation is the remaining life fraction times the depreciable amount…
Correct answer: [2 (n - m + 1)/n(n + 1)]. (P - S)- A. 1.2 to 1.4
- B. 2.5 to 2.7
- C. 4.2 to 4.4
- D. 6.2 to 6.4
Explanation: For a solid-fluid processing plant, the Lang factor is commonly about 4.3, meaning fixed capital is roughly 4.3 times the delivered cost…
Correct answer: 4.2 to 4.4- A. p(1 - i.n)
- B. p(1 + i.n)
- C. p(1 + i)n
- D. p.i.n.
Explanation: Simple interest is calculated only on the original principal in every period, so total interest after n periods is I = pin.
Correct answer: p.i.n.- A. Decreases
- B. Increases
- C. Increases linearly
- D. Remain constant
Explanation: Increasing the discount rate reduces the present value of every future cash flow, while the initial investment remains unchanged.
Correct answer: Decreases- A. Manufacturing cost
- B. Discrete compound interest
- C. Depreciation by sinking fund method
- D. Cash ratio
Explanation: The sinking-fund depreciation method deposits equal periodic amounts so that, with interest accumulation, the total reaches the required…
Correct answer: Depreciation by sinking fund method- A. Plant overhead cost
- B. Fixed charges
- C. General expenses
- D. Direct production cost
Explanation: Utilities such as power, steam, cooling water and fuel are consumed directly during production, so their cost is included in direct…
Correct answer: Direct production cost- A. Initial cost
- B. Difference between initial cost and salvage value
- C. Depreciation during the (n - 1)th year
- D. Book value at the end of (n - 1)th year
Explanation: In the diminishing-balance method, depreciation is a fixed percentage of the asset’s opening book value for that year.
Correct answer: Book value at the end of (n - 1)th year- A. > 20
- B. 20
- C. 10
- D. < 20
Explanation: With 10% earned in each half-year period, the annual growth factor is (1.10)² = 1.21, giving a 21% annual return.
Correct answer: > 20- A. 10 to 20
- B. 35 to 45
- C. 55 to 65
- D. 70 to 80
Explanation: Equipment installation includes erection, foundations, piping connections, electrical work and related labor.
Correct answer: 35 to 45- A. Competition from other manufactures
- B. Product distribution
- C. Economics
- D. Opportunities
Explanation: Market analysis examines competition, distribution channels and market opportunities for the product.
Correct answer: Economics- A. 30
- B. 50
- C. 75
- D. 95
Explanation: Seasonal plants need extra funds to cover inventory and operating expenses during the production or selling cycle.
Correct answer: 50- A. Net present worth
- B. Pay out period
- C. Discounted cash flow
- D. Rate of return on investment
Explanation: The payback or payout period measures how long cumulative cash inflows take to recover the investment, and standard versions often omit…
Correct answer: Pay out period- A. Low alloy steel
- B. Lead
- C. High alloy steel
- D. Titanium
Explanation: Titanium is exceptionally expensive compared with low-alloy steel, lead and most high-alloy steels, although it is selected when its…
Correct answer: Titanium- A. Working capital
- B. Overhead cost
- C. Indirect production cost
- D. Direct production cost
Explanation: Total capital investment has two main parts: fixed capital investment for land, equipment and facilities, and working capital for…
Correct answer: Working capital- A. 1000 (1 + 0.1)20
- B. 1000 (1 + 0.1/4)20
- C. 1000 (1 + 0.1/4)5
- D. 1000 (1 + 0.1/2)5
Explanation: Five years at quarterly compounding gives 5 × 4 = 20 compounding periods.
Correct answer: 1000 (1 + 0.1/4)206540. 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
Explanation: The effective annual rate equals the nominal rate only when interest is compounded once per year.
Correct answer: Annually