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 329 of 350

  • A. Declining balance
  • B. Sum of the years digit
  • C. Straight line
  • D. None of these

Explanation: The straight-line method divides the depreciable amount equally over the asset life, giving the same depreciation charge every year.

Correct answer: Straight line
  • A. 121
  • B. 110
  • C. 97
  • D. 91

Explanation: With 10% interest every half-year, one year contains two compounding periods: Rs. 100 × (1.10)² = Rs. 121.

Correct answer: 121
  • A. Multiple straight line method
  • B. Sum of the years digit method
  • C. Declining balance method
  • D. Sinking fund method

Explanation: The sinking-fund method charges less depreciation in the early years, so its early book values remain higher than with straight-line…

Correct answer: Sinking fund method
  • A. Annually
  • B. Fortnightly
  • C. Monthly
  • D. Half-yearly

Explanation: Nominal and effective annual rates are identical only when compounding occurs once per year.

Correct answer: Annually
  • A. Overhead cost
  • B. General expenses
  • C. R & D cost
  • D. None of these

Explanation: Total product cost is obtained by adding general expenses to manufacturing cost.

Correct answer: General expenses
  • A. Cash ratio
  • B. Current ratio
  • C. Net working capital
  • D. Liquids assets

Explanation: Net working capital measures the funds tied up in short-term operations and is calculated as current assets minus current liabilities.

Correct answer: Net working capital
  • A. None of these
  • B. And plant overhead cost
  • C. Plant overhead cost and administrative expenses
  • D. Fixed charges and plant overhead cost

Explanation: Factory manufacturing cost includes direct production cost, fixed charges, and plant overhead cost.

Correct answer: Fixed charges and plant overhead cost
  • A. 15
  • B. 35
  • C. 55
  • D. 75

Explanation: The conventional chemical-plant cost estimate used in this comparison places Indian plants at about 35% above comparable U.S. plants.

Correct answer: 35
  • A. Cash reserve
  • B. Turnover
  • C. Capital
  • D. Investment

Explanation: The turnover ratio is gross annual sales divided by fixed capital investment.

Correct answer: Turnover
  • A. 1 to 5
  • B. 25 to 35
  • C. 10 to 20
  • D. 35 to 45

Explanation: Utilities commonly account for roughly 10 to 20% of total product cost in ordinary chemical process plants.

Correct answer: 10 to 20
  • A. 2
  • B. 10
  • C. 30
  • D. 50

Explanation: Construction expenses are commonly estimated at about 10% of the total direct cost of a chemical plant.

Correct answer: 10
  • A. Total cost considerations (pumping cost plus fixed cost of the pipe)
  • B. Density of the fluid
  • C. Viscosity of the fluid
  • D. None of these

Explanation: The economic diameter minimizes total annual cost by balancing the pipe's fixed or installation cost against pumping cost.

Correct answer: Total cost considerations (pumping cost plus fixed cost of the pipe)
  • A. 0.1
  • B. 0.6
  • C. 0.2
  • D. 0.8

Explanation: The six-tenths rule is written as cost proportional to capacity raised to the 0.6 power.

Correct answer: 0.6
  • A. Product inventory
  • B. In-process inventory
  • C. Minimum cash reserve
  • D. Storage facilities

Explanation: Working capital includes inventories and cash needed for routine operation, such as product and in-process inventories and a minimum cash…

Correct answer: Storage facilities
  • A. 5 years
  • B. 7 years
  • C. 12 years
  • D. 10 years

Explanation: The operating payback period is Rs. 100 lakhs divided by Rs. 20 lakhs per year, or 5 years.

Correct answer: 7 years
  • A. Rate of return on investment
  • B. Cash reserve
  • C. Payout period
  • D. Discounted cash flow based on full life performance

Explanation: Cash reserve is a component of working capital, not a profitability-evaluation method.

Correct answer: Cash reserve
  • A. Thermal
  • B. Nuclear
  • C. Hydroelectric
  • D. Fast breeder reactor

Explanation: Hydroelectric plants have no fuel cost and generally require relatively low operating and maintenance expenditure after construction.

Correct answer: Hydroelectric
  • A. Contingencies
  • B. Raw material costs
  • C. Labour costs
  • D. Onsite and offsite costs

Explanation: Direct fixed capital is grouped into onsite costs for the process facilities and offsite costs for supporting facilities and utilities.

Correct answer: Onsite and offsite costs
  • A. Loss due to accident/breakdown in the machinery
  • B. Loss due to obsolescence of the equipment
  • C. Loss due to decrease in the demand of product
  • D. Repairs and maintenance cost

Explanation: Depreciation represents loss in an asset's value from causes such as obsolescence, wear, and accidental damage.

Correct answer: Repairs and maintenance cost
  • A. And economic life of a project are the same
  • B. Is the length of time over which the earnings on a project equals the investment
  • C. Is affected by the variation in earnings after the recovery of the investment
  • D. All A, B. and C

Explanation: The payback period is the time required for a project's cumulative earnings or cash inflows to recover its initial investment.

Correct answer: Is the length of time over which the earnings on a project equals the investment