All Free Chemical Engineering MCQs with Answers

• A. Neither A. nor B.
• B. Declining balance
• C. Both A. and B.
• D. Straight line method

Explanation: Straight-line and declining-balance methods allocate the equipment cost over its service life but do not include interest on invested…

• A. Gives a correct picture of profitability
• B. Does not measure the discounted rate of return
• C. Underemphasises liquidity
• D. Takes into account the cash inflows after the recovery of investments

Explanation: The simple payback period measures how quickly the initial investment is recovered, but it ignores the time value of money and does not…

• A. Fixed charges
• B. Plant overheads
• C. Administrative expenses
• D. Direct products cost

Explanation: Manufacturing cost includes direct product costs, plant overheads, and fixed charges associated with production.

• A. Ageing
• B. Wear and tear
• C. Breakdown or accident
• D. Obsolescence

Explanation: Functional depreciation results when equipment loses value because a newer, more efficient, or better-designed alternative makes it…

• A. Decrease
• B. Increase
• C. No change
• D. None of these

Explanation: Depreciation is recorded as an expense, so it reduces the profit reported by a plant over time.

• A. Fixed
• B. Utilities
• C. Overhead
• D. Capital

Explanation: Effluent treatment requires operating services such as water handling, treatment chemicals, power and waste disposal, so it is commonly…

• A. Income tax
• B. Fixed cost
• C. Total product cost
• D. None of these

Explanation: Gross earning is obtained before deducting financial items such as income tax, by subtracting the total product cost from total income.

• A. Total annual rate of production equals the assigned value
• B. Annual sales equals the fixed cost
• C. Annual profit equals the expected value
• D. Total annual product cost equals the total annual sales

Explanation: At the break-even point, revenue exactly covers total costs, so there is neither profit nor loss.

• A. Time of starting of job and also about how much work should be completed during a
• B. Means to minimise idle time for machines
• C. Time of completion of job
• D. Proper utilisation of machines
• E. particular period

Explanation: Scheduling specifies when jobs should start and what amount of work should be completed during each period.

• A. Equipment installation cost
• B. Equipment cost by scaling
• C. Cost of piping
• D. Utilities cost

Explanation: The six-tenths rule estimates the cost of equipment at a new capacity from the known cost at another capacity: cost varies approximately…

• A. p(1 - i)n
• B. p(1 + i)n
• C. p[(1+i)n - 1)]
• D. p(1 + in)

Explanation: After n periods, the accumulated amount is p(1+i)^n, so the interest earned alone is p[(1+i)^n - 1].

• A. Assets = equities
• B. Assets = liabilities + net worth
• C. Total income = costs + profits
• D. Assets = capital

Explanation: The accounting identity is Assets = Liabilities + Net worth, while total income equals costs plus profit.

• A. Process instruments and control
• B. Fabricated equipment and machinery
• C. Pumps and compressor
• D. Electrical equipments and material

Explanation: Fabricated equipment and machinery usually carry the largest weighting in a chemical plant cost index because major plant expenditure is…

• A. Present worth method
• B. Sinking fund method
• C. Sum of the years-digits method
• D. All A, B. and C.

Explanation: The sum-of-the-years-digits method allocates depreciation using an accelerated fraction of the depreciable cost and does not apply…

• A. 10-15% of purchased equipment cost
• B. 3-10% of fixed capital investment
• C. Neither A. nor B.
• D. Either A. or B.

Explanation: Electrical installation is commonly estimated either as about 10–15% of purchased equipment cost or as roughly 3–10% of fixed capital…

• A. Transportation facilities
• B. Finished products in stock
• C. Raw materials is stock
• D. Semi-finished products in the process

Explanation: Working capital includes inventories such as raw materials, finished goods, and work-in-process.

• A. Equipment selection
• B. Product evaluation
• C. Equipment design
• D. Cost estimation

Explanation: Market research examines customer needs, competing products, demand, and the suitability of a proposed product, so product evaluation is…

• A. Overhead and utilities
• B. Operating labour, supervision and supplies
• C. Market survey
• D. Depreciation, property tax and insurance

Explanation: Total product cost covers manufacturing expenses such as labour, utilities, supplies, overhead, depreciation, taxes, and insurance.

• A. (1 + i)n/S
• B. S/(1 + n)i
• C. S/(1 + in)
• D. S/(1 + i)n

Explanation: Compounding gives S = P(1 + i)^n, so rearranging for the present worth gives P = S/(1 + i)^n.

• A. Utilities plants
• B. Raw materials inventory
• C. Process equipment
• D. Emergency facilities

Explanation: Fixed capital consists of durable plant assets such as process equipment, utility plants, and emergency facilities.