Practice Pakistan's most useful MCQs for competitive exams

The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?

• (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

Submitted By :Ali Uppal

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

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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

Submitted By :Ali Uppal

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

Submitted By :Ali Uppal

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

Submitted By :Ali Uppal

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?

• (A)  40,096
• (B)  43,196
• (C)  53,196
• (D)  60,196

Answer

Submitted By :Ali Uppal

According to six-tenths-factor rule, if the cost of a given unit at one capacity is known, then the cost of similar unit with ” times the capacity of the first unit is approximately equal to _____________ times the cost of the initial unit?

• (A)  n
• (B)  n0.6
• (C)  n0.4
• (D)  √n

Answer

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Fixed charges for a chemical plant does not include the____________________?

• (A)  Interest on borrowed money
• (B)  Rent of land and buildings
• (C)  Property tax, insurance and depreciation
• (D)  Repair and maintenance charges

Answer

Submitted By :Ali Uppal

“Break-even point” is the point of intersection of_____________________?

• (A)  Fixed cost and total cost
• (B)  Total cost and sales revenue
• (C)  Fixed cost and sales revenue
• (D)  None of these

Answer

Submitted By :Ali Uppal

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs______________?

• (A)  300
• (B)  600
• (C)  800
• (D)  1000

Answer

Submitted By :Ali Uppal