Home/Important MCQs/Plant-Economics/MCQs

Plant-Economics MCQs

Free 92+ Plant-Economics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Practise below with answers and explanations.

92 MCQs available← Back to Plant-Economics

All Subjects

Categories are collapsed by default. Use search to jump.

Search categories

PAST PAPERS
General Knowledge MCQs
•Biology Mcqs
•Everyday Science Mcqs
Chemistry Mcqs
Physics Mcqs
Statistics Mcqs
Agriculture MCQs
English Mcqs
Computer Mcqs
Medical Mcqs
Pedagogy Mcqs
Physical Education
World Current Affairs MCQs
URDU GENERAL KNOWLEDGE
Psychology Mcqs
Political Science Mcqs
Software Engineering Mcqs
Mathematics Mcqs
Islamic Studies Mcqs
•Management Mcqs
BOTANY MCQS
•Business Maths MCQs
CHEMICAL ENGINEERING
Civil Engineering Mcqs
Electrical Engineering Mcqs
Election Officer Mcqs
Pak Study Mcqs
Pakistan Current Affairs MCQs
•Computer Science

92 questions in this list. Select an option to practice, or open a question for the full page with explanation.

About this subject

Plant-Economics

Show Answers

Correct options are highlighted when revealed.

1.Identify the incorrect statement from the following:

Net worth represents the sum of paid-up share capital and reserves, also known as shareholders' equity.Return on equity is calculated as profit after tax divided by net worth.The working capital turnover ratio equals sales divided by net working capital.At the breakeven point, total production costs exceed net sales revenue.

2.Identify the incorrect statement from the following options:

Gross margin equals net income minus net expenses.Net sales realization (NSR) is calculated by subtracting selling expenses from gross sales.At the breakeven point, net sales realization exceeds the total production cost.Net profit is derived by deducting depreciation and interest from gross margin.

3.Which of the following statements is accurate?

The difference between income and expenses is called gross revenue.Unamortised cost refers to the original purchase price of an asset minus all depreciation recorded so far.The sum-of-the-years-digits depreciation method includes interest on the investment in its calculation.Scrap value represents the net proceeds from selling used property after deducting any removal and sale expenses.

4.Identify the incorrect statement from the following options:

The yearly depreciation rate for machinery and equipment in a chemical process plant is unspecified.Buildings in a chemical plant typically depreciate at around 3% of their original cost annually.Annual insurance expenses for a chemical plant generally amount to about 1% of the fixed capital investment.Research and development expenses in a chemical industry usually represent approximately 15% of net sales.

5.What does a balance sheet of an industrial company represent?

The company's financial status at a specific momentJust the current assetsOnly the fixed assetsBoth current and fixed assets exclusively

6.Identify the incorrect statement from the following options:

Gross revenue refers to the total capital earned from selling goods or services.Net revenue represents the profit left after subtracting all expenses except taxes.The cash ratio measures the proportion of cash readily available compared to current liabilities.A consolidated income statement for a specific period displays surplus capital and the connection between total income, expenses, and profit.

7.What is the formula for the present value of an annuity when a payment of R is made at the end of each year for n years, given an interest rate of i?

R × [((1 + i)^n - 1) / i]R × [((1 + i)^n - 1) / (i × (1 + i)^n)]R × (1 + i)^nR ÷ (1 + i)^n

8.Which of the following is not classified as a sales expense for a chemical plant's product?

Promotional activitiesStorage costsLegal chargesClient supportDistribution expenses

9.Which type of tax is calculated based on total earnings before deductions?

Real estate taxExcise dutyIncome taxCapital gains taxSales tax

10.How is the operating profit of a chemical plant defined?

Profit before deducting interest and taxes, which equals net profit plus interest and taxProfit after tax combined with depreciationNet profit added to tax expensesProfit remaining after tax is deducted

11.How much influence does a shareholder have over company management compared to a debenture holder?

GreaterLesserEqualNoneNot applicable

12.Which of the following statements about depreciation is accurate?

When applying the straight-line method, the yearly depreciation expense remains consistent.It represents the inevitable decline in value of assets like machinery and materials over time.Depreciation is considered when computing income tax obligations related to investment cash flows.All of the above statements are true.

13.In the fixed capital investment of a chemical plant, which includes all expenses for plant and manufacturing facilities along with working capital, which of the following components typically accounts for the smallest proportion of the total fixed capital investment?

Cost associated with electrical system installationExpenses for installing machinery and equipmentPiping installation expendituresCosts related to insulating equipmentStructural construction costs

14.Among the following ceramic packing types, which one is the most expensive?

Berl saddlesRaschig ringsPall ringsIntalox saddles

15.What percentage of the fixed capital investment is typically allocated to the purchase cost of equipment in a chemical process plant?

Between 10% and 20%From 20% up to 40%Ranging from 45% to 60%Approximately 65% to 75%

16.In a chemical process facility, such as a distillation unit, approximately what percentage of the fixed capital investment is allocated to piping costs?

4 percent13 percent22 percent34 percentNot applicable

17.A reactor with an initial cost of Rs. 80,000 and a salvage value of Rs. 10,000 is expected to last for 10 years. If the annual interest rate is 10%, what will be the book value of the reactor after 5 years using the sinking fund depreciation method?

Rs. 40,096Rs. 43,196Rs. 53,196Rs. 60,196Rs. 55,000

18.Using the six-tenths rule, if the cost of a unit at a certain capacity is known, what is the approximate cost of a similar unit with n times the original capacity expressed as a multiple of the initial cost?

nn to the power of 0.6n raised to 0.4square root of nnone of the above

19.Which of the following is not considered a fixed cost in a chemical plant?

Interest expenses on loansLease payments for land and facilitiesCosts for property taxes, insurance, and depreciationExpenses related to repairs and upkeep

20.At what point do total cost and sales revenue curves intersect in cost analysis?

The point where fixed costs equal total costsThe point where total costs match sales revenueThe point where fixed costs equal sales revenueNo intersection occursNone of the above

← PreviousPage 1 of 5Next →