Question Bank For Biochemical Engineering

St.
Joseph’s College of Engineering Department of Chemical Engineering
St. JOSEPH’S COLLEGE OF ENGINEERING

DEPARTMENT OF CHEMICAL ENGINEERING
QUESTION BANK 2018-19
PROCESS ECONOMICSCH 6704
UNIT I PART A
1. Give two examples of types of organization. (Nov 2017)

Example 1
 Line organization
 Line and Staff organization
 Functional Organization
 Project Organization
 Matrix Organization
Example 2
 Centralized
 Decentralized
 Hybrid
 Matrix
2. List out the function of a Manager in a process industry. (Nov 2017, Nov 2014)
A manager wears many hats. He is the team leader, planner, organizer, cheerleader, coacher,
problem solver and decision maker.
3. List out the functions of inventory control? (Nov 2017, Nov 2014)
The primary function of inventory is to use marketing and production to increase profitability,
to get the maximum amount for the business' investment. There are other functions of
inventory, such as balancing supply and demand, improving efficiency, establishing a safety
stock and geographical specialization. All of those help to increase a business' profitability.
4. Define the term controlling in management. (May 2017)

Control in management means setting standards, measuring actual performance and taking
corrective action.
5. Define inventory. (Nov 2017, Nov 2013)

Inventory management is a science primarily about specifying the shape and percentage of
stocked goods. It is required at different locations within a facility or within many locations of
a supply network to precede the regular and planned course of production and stock of
materials.
6. What is inventory control? Give any two examples. (May 2017)

Inventory control is the processes employed to maximize a company's use of inventory. The
goal of inventory control is to generate the maximum profit from the least amount
of inventory investment without intruding upon customer satisfaction levels.
Examples of inventory that a manufacturing business may have include: raw materials, such as
wood, to make a shelf. work-in-process inventory, such as an unfinished cake in a food
manufacturing business.
7. What are the different types of organizations? (May 2017)

There are mainly four common organizational forms:
(i). Centralized
(ii). Decentralized
(iii). Hybrid
(iv). Matrix
8. Define motion economy. (Nov 2016)
Process Economics CH 2251 Question Bank 2015-16 Page 1

St. Joseph’s College of Engineering Department of Chemical Engineering
The principles of motion economy form a set of rules and suggestions to improve the manual
work in manufacturing and reduce fatigue and unnecessary movements by the worker, which
can lead to the reduction in the work related trauma.
9. Define Planning. (Nov 2012)

It is process by which objectives are established and all the resources of the firm are
effectively integrated to accomplish the objectives in a profitable manner.
10. What are the different types of communication? (Nov 2012)

It can be verbal and non verbal communication. I)Verbal communication include written
communication. Ex: Documents, circular, leaflets, posters etc. and oral communication.
II) Nonverbal communication Ex: Body language, gestures, postures etc.
11. What is Method Study? (May2012)

Method study is nothing but recording and critical examination of existing or proposed
ways of doing work in order to develop easier and more effective methods.
12. Explain the principles of Management. (May 2012)

Management is the process of designing and maintaining an environment in which
individuals, working together in groups, accomplish their aims effectively and efficiently.
According to Koontz and Weilhrich "Management is process of designing and maintaining
of an environment in which individuals working together in groups, efficiently and
efficiently attain the organizational goals."
13. What is Work Study? (May 2012)

Study of all factors that affect the efficiency and economy of human wor k, in
Order to make improvements,
14. What are the purposes for which we communicate? (Nov 2011)
The basic purposes of communication are information sharing, giving feedbacks,
controlling, influencing, problem solving, decision making, facilitating changes and group
building.
15. Define the span of management? (Nov 2011)

Span of management refers to the number of subordinates that a manger can efficiently
manage. Number of subordinate directly reporting to a manager is known as span. Span of
management is important for determining the complexity of an individual manager‟s job and
determining shape and structure of the organisation
16. What is SIMO chart? (Nov 2011)

A SIMO chart, often based on film analysis used to record simultaneously on a common time
scale the therbligs (18 kinds of elemental motions) or groups of therbligs performed by
different parts of the body of one or more workers.
17. List out four objectives of production planning and control. (Nov 2011)
Objectives of production planning and control are to establish routes and schedules for work
that will ensure the optimum utilization of materials, workers and machines and to provide the
means for ensuring the operation of the plant in accordance with these plans.
18. What is meant by upward communication? (Nov 2010)

Communication that flows to a higher level in an organization is called upward
communication. It provides feedback on how well the organization is functioning. The
subordinates use upward communication to convey their problems and performances to their
superiors.
19. List out the different types of forecasting techniques. (Nov 2010)

Basically there are three types of forecasting techniques.

(1). Survey Methods: (i). Census method (ii). Sample method
(2). Statistical Methods: (i). Trend line by observation (ii). Barometric technique
(iii). Simultaneous equation method (iv) Correction and regression methods.
(3). Other Methods: (i). Expert Opinion Method. (ii). Test Marketing
(iii). Controlled experiments (iv) Judgmental approach.
20. What are the qualities of leader?

a. Willing to take up responsibility and accountability
b. Adaptable to changing situations
c. Assertiveness and decisiveness
d. Creative and charismatic
e. Excellent communication skills
f. Personal , interpersonal and negotiation skills.
21. Differentiate between centralization and decentralization.

Centralization is that condition where in much of the decision making authority is
retained at the top of the managerial hierarchy. Decentralization on the other hand is that
condition where in much of the decision making authority is pushed downwards to the
lower management levels.
22. Define staffing.

It is filling, and keep filled, positions in the organization structure. This includes identifying
work-force requirements, inventorying the people available, and recruiting, selecting,
placing, promoting, appraising, planning the careers of, compensating, and training and
development to accomplish the task effectively and efficiently.
23. What is co-ordination?

It is orderly synchronizing of efforts of the subordinates to provide the proper amount,
timing and quality of execution so that their unified efforts lead to the achievement of the
started objective, namely the common purpose of the enterprise.
24. What are the techniques for controlling?

Budgetary control, inventory control, PERT & CPM, preventive control, financial
control, forecasting, performance appraisal.
PART B
1. (i). Identify the general steps in forecasting process and explain.

(ii). Explain the various inventory control methods (Nov 2017)
2. (i). Explain in detail about the techniques of communication methods in the process industry.
(ii). Explain the principle of time study. (Nov 2017)
3. Explain the various types of business organizations. Bring out their advantages and
disadvantages. (Nov 2017)
4. Explain: (i). Routing (ii). Scheduling (iii). Dispatching

(iv) Follow up (v).Role of control charts in production. (Nov 2017)
5. (i). Briefly discuss the communication process models.

(ii). Explain various kinds of work measurement techniques. (May 2017)
6. (i). Explain the concept of MBO. What are its benefits and weakness?
(ii). “Decision making is the primary task of the manager” – Comment. (May 2017)

7. (i). Explain the various types of organizations.

(ii). Describe various barriers of communication. (Nov 2016)
8. (i). Explain the steps involved in motion study.

(ii). Describe in detail ABC method of inventory control. (Nov 2016)
9. With suitable examples explain the functions of a manager. (May 2016)
10. Explain the techniques of work measurement. (May 2016)
11. Describe the various steps followed in planning process? (Nov 2012)
12. Define controlling. Explain in detail the requirement process and communication process.
(Nov 2012)
13. What is communication and how can you make communication effective? What are the
barriers for effective communication?(Nov 2011)
14. Briefly explain the following: (i). Staffing (ii). Directing (iii). Coordinating. (May 2012)
15. (i). What is decentralization? Compare the merits and demerits of decentralization with
centralization.
(ii). What is motivation? Why should the organization motivate its employees? Discuss the
special motivational techniques. (May 2011)
16. (i). Discuss the significance of budget as a controlling technique.

(ii). What is PPC? Discuss in detail the stages in PPC. (May 2010)
UNIT II PART A
1. Mention two types of depreciation. (Nov 2017)

Two types of depreciation are (i). Physical depreciation and (ii). Functional depreciation.
2. What are the main components of working capital? (Nov 2017)

The three important components of working capital are (i). Accounts payable (ii). Accounts
receivable and (iii). Inventory management.
3. Define BEP (Nov 2017, Nov 2012)

Break even analysis explains the relationship between revenue and costs in relation to sales
volume of a business enterprise. It is the situation where total cost is equal to total revenue. It
can be denoted as “no- profit and no-loss” position for the company.
4. Differentiate between fixed and variable cost. (Nov 2017, Nov 2016)
Variable costs are those costs that vary depending on a company's production volume; they
rise as production increases and fall as production decreases. Variable costs differ from fixed
costs such as rent, advertising, insurance and office supplies, which tend to remain the same
regardless of production output.
5. Give any four examples of fixed cost. (Nov 2016)

Fixed cost is one which is independent of production rate. Examples: Rent, property taxes,
depreciation, amortization, Insurance..etc.
6. Differentiate between depreciation and depletion. (Nov 2016)

Depreciation is a means of allocating the cost of a material asset over its useful life,

and depletion is used to allocate the cost of extracting natural resources from the Earth and is
the actual physical depletion of a natural resource by a company.
7. Define profitability. (Nov 2016)

Profitability is ability of a company to use its resources to generate revenues in excess of its
expenses. In other words, this is a company‟s capability of generating profits from its
operations.
8. Distinguish between the book value and Salvage Value? (Nov 2012)
In accounting, the book value is the value of an asset according to its balance sheet account
balance. For assets the value is based on the original cost of the asset less any depreciation,
amortization or impairment costs made against the asset.
Salvage value is remaining value of an asset after it has been fully depreciated.
9. What is the time value of money? (Nov 2012)

It is the purchasing power of money. The worth of Rs. 100, in the future will not be the same
as present time. Therefore time value of money, expresses the worthiness of the money for a
specified time period.
10. What are the causes of depreciation? (Nov 2012)

Fixed assets depreciate because of its continuous usage, depletion, scrap and absorption
during the production process.
11. Define Depreciation. (Nov/Dec2012)

The reduction in the value or the effective economic life of a product arising from the passage
of time, use or wear and tear.
12. What do you mean by annuity method of depreciation?

The amount of total depreciation is determined by adding the cost of the asset and interest
thereon at an expected rate or return. The amount of the depreciation is determined with the
help of annuity table.
Formula: R= C-S x compund value of annuity of Re. 1 at interest rate i and n number of
years.
13. What do you mean sinking fund method for calculating depreciation?
It is designed in such a way that company can incorporate the advantages of depreciating the
asset as well accumulating the amount for its replacement.
Formula for calculating depreciation amount:
= C-S/Future value or compound value if Re.1 at i interest rate, in n number of
years.
14. Define straight line method of depreciation accounting.

Depreciation is charged evenly every year throughout the life of the asset
Formula: R=C-S/n, where C is the cost of the asset, S is the scrap value and n is the life of
the asset in years. Depreciation rate = (r)= (R/C )x100
15. What is cost of capital?

The money incurred or spend to purchase land, to construct buildings, to install equipment
and to provide cash to permit purchase of supplies and to pay salaries.
16. What is working capital?

It refers to that portion of an organization‟s capital which is required in the short run to
finance current assets such as cash, bank balance, debtors, marketable securities, bills
receivable and inventories. It is the capital that is used to day to day activities of the
organization. It is derived by deducting current liabilities from current asset.

17. What are the different types of depreciation?

Physical depreciation, Functional depreciation, Technological depreciation ,Depletion,
Monetary depreciation
18. State the elements of cost.

The elements of cost are: Direct material cost, direct labour cost direct expense cost and
overhead cost: factory overhead, administration, overhead and Selling and distribution
overhead.
19. Briefly explain the components of manufacturing cost.

Prime cost= DM+DL+DE
Works cost= Prime cost + factory OH
Cost of production= works cost +administrative OH
Cost of sales= cost of production + selling and distribution OH
20. What are the factors that influence the manufacturing cost?
Size of the firm, manufacturing methods, nature or number of products, requirement
of degree of management control, organizational structure, raw materials,
manpower efficiency, regulatory norms.
21. Mention the different types of costing.

Job costing, job cost sheet, contract costing, batch costing, process costing, operating, costing,
marginal costing.
22. State the sources of working capital

Equity share capital and reserves, debentures, public deposits, cash credit facility by banks,
discounting of bills, letter of credit , bank guarantee.
23. What are the factors that influence working capital?

Nature of business, season of operations, production volume, manufacturing cycle
time, procurement lead time, inventory turnover, inventory policy
24. Define the present value concept.

The present worth of a future payment/installment or series of payments adjusted for
the time value of money.
PART B
1. Explain the methods of determining depreciation. (Nov 2017)
2. The original value of the equipment is Rs 22,000/-. Its salvage value is Rs 2000/- at the end
of useful life of 10 years. Determine the book value of the equipment at the end of 5th year by
(i). Straight line method (ii). Declining balance method. (iii). Double declining balance
method (iv). Sum of the year‟s digit method. (Nov 2017, 2012)
3. (i). What are the factors affecting investment and production costs.
(ii). List out the elements of cost and explain. (Nov 2017)
4. (i). Explain in detail the calculation of capital requirement for a complete plant
(ii). Discuss the importance of time value of money and equivalence. (Nov 2017)
5. (i). A company has a proposal to purchase a flow controller costing Rs. 2 Lakhs which
permits the elimination of use of an employee per day. The salary of the employee is Rs.
50,000/- per year. The expected life of the controller is 6 years. If the value of money is 10%,
comment whether the company should contain with employee or new controller?

(ii). Explain the relationship between interest and time value of money. (May 2017)
6. (i). Equipment was purchased for Rs 45,000 on first Jan 1976. The installation charge Rs
7000. The equipment was replaced by new one on 31 dec 1995. If the scrap value was
estimated Rs 15.000. What would be the rate of depreciation and depreciation fund on Jan
1885. If after 12,000 years of running some components were replaced and replacement was
Rs 1500. What will be new rate of depreciation.
(ii). Discuss the various factors to be considered in estimating the cost of process plant.
(May 2017)
7. (i). Write short notes on time value of money and its equivalence.
(ii). A mine is offered for Rs 3 crores and has the ore estimated of 20 years of working. The
investor requires as stipulated returns of 12% on his investment. If a 5% sinking fund is used,
what should be the minimum profit be on operations. (Nov 2016)
8. Heat exchanger is purchased 6 year ago. Cost of the heat exchanger is Rs. 1, 00,000. It has a
life of 8 years. Its salvage value is Rs 4000. What is the book value today if prevailing
sinking fund rate of interest is 8%. Calculate by using straight line, fixed percentage method.
Sum of year sinking fund. And draw graphically. (Nov 2016)
9. Explain the elements of cost in detail. List out the components of the cost sheet and discuss.
(Nov 2016)
10. (i). An equipment costs Rs 2,00,000/- and will have a salvage value of Rs. 25,000 at the end
of its useful life period of 20 years. Calculate the capitalized cost of the equipment if the
interest is compounded at 8.5%
(ii). Determine the life period of the following. The installed value of a machine is Rs.
1,15,000. The scrap value of the machine is Rs. 15,000 after the useful life period. The
yearly cost due to depreciation is Rs. 5,427.80. The depreciation fund will be accumulated at
an annual interest rate of 7.5%.(Nov 2015)
11. (i). Explain how to determine the value of money.

(ii). Explain the relationship between interest and time value of money.
(iii). Explain the various cost concepts. (Nov 2012)
12. Discuss the equations of EOQ and EBQ with a suitable illustration. (Nov 2012)
13. Describe the computation of estimation of capital cost, manufacturing costs and working
capital (May 2012, Nov 2012)
14. What are the causes of depreciation? The cost of a machine is Rs 1,60,000 and its scrap value
if Rs 40,000. Estimated life is 5 years. Using sum of years digit method, determine
depreciation charges for each year. (May 2012)
15. (i). What are permanent and temporary working capitals? What are the various factors which
influence the quantum of working capital?
(ii). From the following information prepare a statement of working capital requirement.
Cost as a percentage of sales: Raw material 40%, Labour 15% Overheads 30%.
Selling price of Rs 200 per Unit.
Estimated sales 1, 80,000 units per annum.
Raw materials to remain in stock for three weeks.
Materials will be in process for one month.
Finished goods to remain in stock for two months.
Credit allowed to debtors one month (20% cash sales)
Credit allowed by suppliers two weeks.
Lag in payment of overheads one and half weeks.
Minimum cash balance to be maintained Rs 20,000

Allow 8% for contingencies. (Nov 2011)
16. The cost of an asset is Rs. 24,000 & the depreciable life is 5years & the expected salvage
value is Rs.3,000. Calculate the annual depreciation, through straight line method and the
book value of the asset. b.Initial investment (v) – Rs.24,000Salvage value (sv) -
Rs.3,000nT - 5years. Calculate the depreciation amount by using declining balance method
and book value of the assets.
17. The following information has been obtained from the records of left Centre Corporation
for the period from June 1 to June 30,1997:
Cost of Raw materials on June 1, 1997 - Rs.30, 000
Purchase of raw materials during the month- 4, 50,000
Wages paid - Rs, 2, 30,000
Factory overhead – Rs.92, 000
Cost or work-in progress on June 1, 1997-Rs.12, 000
Cost of raw materials on June 30, 1997 – Rs.15, 000
Cost of stock of finished goods on June 1, 1997 – Rs. 60,000
Cost of stock of finished goods on June 30, 1997 – Rs.55, 000
Selling and distribution overheads - Rs.20, 000
Sales - Rs. 9, 00,000
Administration Overheads - Rs. 30,000
Prepare a statement of cost. Assuming that all the products manufactured are sold,
what should be the selling price to obtain a profit of 25% on selling price?
UNIT III PART A
1. State Williams six tenth factor rule (Nov 2017, Nov 2016)
Williams six tenth rule is an empirical relationship between the cost and size of a manufacturing
facility. According to this rule as size increases cost increases by an exponent of six – tenths.
𝐶𝑜𝑠𝑡1 𝑆𝑖𝑧𝑒1 0.6
=
𝐶𝑜𝑠𝑡 2 𝑆𝑖𝑧𝑒2
2. What is the cost of a tank of capacity 50 lits if the cost of a similar tank of capacity 10 lits is
Rs 20,000/-? (May 2017)
By Williams six tenth factor rule:
𝐶𝑜𝑠𝑡1 𝑆𝑖𝑧𝑒1 0.6 𝐶𝑜𝑠𝑡 50 𝐿𝑡 50 0.6
= ; =
𝐶𝑜𝑠𝑡 2 𝑆𝑖𝑧𝑒2 2000 10
Cost of 50 liters tank = Rs. 5253
3. Give any four examples of intangible assets. (Nov 2017)

 Patents
 Copy rights
 Trade marks
 Business Methodologies
4. What are the sources of capital? (Nov 2017)

Long term – usually above 7 years : Share Capital, Mortgage loan, Retained Profit, Venture
capital, Debenture, Project finance
Medium term – usually between 2 and 7 years: Term Loans, Leasing, Hire Purchase
Short term – usually under 2 years: Bank Overdraft, Trade credit, Deferred Expenses, Factoring
5. Identify investment alternatives. (Nov 2017, Nov 2015)

Most alternative investment assets are held by institutional investors or accredited, high-net-worth
individuals because of their complex nature, limited regulations and relative lack of
liquidity. Alternative investments include hedge funds, managed futures, real estate, commodities
and derivatives contracts.

6. State Taylor’s principles of management. (Nov 2017, Nov 2016)

Taylor published "The Principles of Scientific Management." In this, he proposed that by
optimizing and simplifying jobs, productivity would increase. He also advanced the idea that
workers and managers needed to cooperate with one another.
7. List out the objectives of project feasibility. (Nov 2016)

Project feasibility study is an analysis and evaluation of a proposed project to determine if it (1) is
technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.
Objectives is to know the focus, business alternatives, new opportunities etc.
8. Define peters principle in the context of management.(Nov 2016)

The Peter principle states that the selection of a candidate for a position is based on the
candidate's performance in their current role, rather than on abilities relevant to the intended role.
Thus, employees only stop being promoted once they can no longer perform effectively, and
"managers rise to the level of their incompetence".
9. Mention the impacts of inflation.

When prices rise for energy, food, commodities, and other goods and services, the
entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of
doing business, borrowing money, mortgages, corporate and government bond yields, and every
other facet of the economy.
10. Define profitability. (Nov 2014)

It is estimating the profit or measuring the amount of returns that can be obtained from investment
in a project.
11. Define forecasting of sales. Give an example. (Nov 2012)

It is the estimation of sales for the future period. The estimation is based on the past data. In the
organization, forecasting can be done for materials, scheduling, plant capacity, type of production
system, sales or demand for the product etc.
12. What is venture capital? Give an example (Nov 2012)

Venture capital (also known as VC or Venture) is provided as seed funding to early-stage, high-
potential, growth companies and more often after the seed funding round as growth funding
round (also referred as series A round) in the interest of generating a return through an eventual
realization event such as an IPO or trade sale of the company. Venture capital typically comes
from institutional investors and high net worth individuals, and is pooled together by dedicated
investment firms. Venture capital firms typically comprise small teams with technology
backgrounds (scientists, researchers) or those with business training or deep industry experience.
13. Define forecasting of sales give an example. (Nov 2012)

Forecasting is about predicting the future as accurately as possible given all the information
available including historical data and knowledge of any future events that might impact the
forecasts. Forecasting the number of units to be sold in the next year, depending upon the supply
and demand gap.
14. Define individual replacement policy. (May 2012)

Individual replacement policy, suggests to replace an existing property that is capable of yielding
the necessary product or service, with a more efficient equipment or property which can operate
with lower expenses.
15. What is the impact of inflation? (May 2012)

(i). Redistribution of the income and wealth and drastic down fall in the standard of living.
(ii). Drastic rise in interest levels.
(iii). People savings will come down drastically.

(iv). Overall efficiency will come down.
16. How is inflation calculated? (Nov 2011)

Rate of inflation is the change of general price level which is measured as follows
[Price level in the year t – Price level in the year (t-1)]
Rate of inflation (Year t) = ----------------------------------------------------------------------- x 100
Price level in the year (t-1)
17. Define inflation. (Nov 2010)
Refers a situation when there is a general rise in prices and a corresponding fall in the value in
money.
18. What are the factors that affect sales forecasting?

Factors affecting sales forecasting: Price, business cycle, customers‟ tastes& preferences,
competition, quality, credit policy, advertising, government policy.
19. What is sensitivity analysis?

Sensitive, the relative magnitude of change in the measure of merit (such as rate of return) caused
by one or more changes in estimated study parameters. It questions whether the original estimates
adequately represent the future conditions that could affect a purpose it if were implemented.
20. What is break even analysis? (Nov/Dec2012)

Break even analysis explains the relationship between revenue and costs in relation to sales
volume of a business enterprise. It is the situation where total cost is equal to total revenue. It can
be denoted as “no- profit and no-loss” position for the company.
21. What is capital budgeting?

It is considered as the process of making investment decisions on capital expenditure on land,
machine, equipment, projects.
22. Define replacement analysis.

An economic analysis involving the comparison of an existing facility and a facility proposed to
supplement the existing facility.
23. What is internal rate of return ?

This is otherwise known as time adjusted return or discounted rate of return.
It is defined as the rate of return which discounts all the future cash inflows to exactly equal the out-lay. In
other words. The internal rate of return is the rate of discount that sets the next present value equal to zero
24. Explain profitability Index.

Profitability Index ratio is the relationship of the present value of the net cash benefits to the present
value of the net cash out-lay. The higher PI, the greater the return.
This method has the meet of placing the present value of each invest project on a relative basis so that
projects of different sizes of capital out-lays can be compared.
25. How do you measure inflation?

Monetary measures: bank rate, open market, curbs on unproductive lending
Fiscal measures: taxation , public borrowing, deficit spending
Direct measures: price control, rationing
26. Distinguish between ROI and ROE. (May 2010)

ROI Return on investment is the ratio of net profit after taxes to the total investment. ROE:
Return on equity relates the net profits available to equity shareholders to the amount invested by
them. The higher the ROE is the more is the profitability and vice versa.
PART B

1. (i). Give an account of inflation and its impact in economy.

(ii). What is forecasting? Explain. (Nov 2017)
2. Explain the various investment appraisal methods with suitable example. (Nov 2017)
3. What are the comparable present worth for the two heat exchangers A and B used to finished
product if money is worth 10% . Exchanger A costs Rs 8 Lakhs has a life for 10 years and a
salvage value of Rs 1 Lakhs. Its operating cost is Rs 30,000/year. Exchanger B has the same life,
costs 9 Lakhs and has salvage value of Rs 70,000/-. It requires Rs 25,000 per year as operating
cost. The unit B also gives an annual energy saving of Rs 15, 000/-. If it is desired to have a
perpetual operation , which installation would you prefer? (Nov 2017; Nov 2012)
4. (i). State the importance of present worth method giving suitable examples.
(ii). Write briefly about the inflation and its importance.
5. (i). State the steps involved in the calculation of NPV.

(ii). Calculate the net present value for Project X and Project Y from the following data:
Project Project Cost Cash inflows after Tax
1st year 2nd year 3rd year 4th year
X 7,000 2,000 5,000 2,000 2,000
Y 7,000 3,000 2,000 2,000 2,000
The project costs are to be incurred immediately firms cost of capital is 10%. State which project
is to be selected and why? (May 2017)
6. The following are the proposals under considerations. Rank the proposal based on payback period
and NPV method. Rate of interest is 10%. (Nov 2016)
Project Initial outlay ACF Life (Yrs)
A 1,00,000 25,000 5
B 80,000 26,000 7
C 40,000 10,000 15
D 1,00,000 24,000 20
E 60,000 24,000 4
7. (i). State and explain the methods commonly employed to select project alternatives. (Nov 2016)
(ii). Explain the term inflation and its effect.
8. Explain in detail the investment appraisal methods with suitable examples. (May 2016)
9. Compare the two projects by NPV method using interest rates of (i). 7% and (ii) 7.5%
Project Initial Net cash income (Before deprecation but after tax, Rs. 00,000)
Year 1 2 3 4 5 6 7 8
A. 20,00,000 4 4 8 2 - - - -
B. 20,00,000 8 6 2 2 2 2 2 2 (May 2016)
10. With suitable examples explain the following investment appraisal methods.
(i). Net present value
(ii). Internal rate of return. (Nov 2015)
11. (i). Indentify the information needs for a sales forecast and explain.
(ii). Explain the general steps in the forecasting process. (Nov 2015
12. Compare the two projects A and B in table by calculating the following: (Nov 2014)
(i). Pay-back period
(ii). Profitability index.

(iii). Net present value at 10% and 15%
Project Initial Net Cash income (before depreciation but after tax, Rs in crore)
Year 1 2 3 4 5 6
A 46,00,00,000 10 10 20 5 -
B 46,00,00,000 24 6 6 6 6 6
13. Explain in detail about project alternative investments. (Nov 2013)
14. Elaborate replacement policy and investment alternative procedure in detail. (Nov 2012)
15. Gupta and Co is planning for an investment plan. For that you are asked to suggest the selection
of any one of the investment proposals using internal rate of return method. (Nov 2011)
Proposal X Proposal Y
Expected investment (In Rs) 5,00,000 4,50,000
Expected cash flows at the end of
I Year II Year III Year IV Year V Year
Proposal X 1,55,000 1,50,000 1,30,000 1,50,000 1,10,000
Proposal Y 1,10,000 1,30,000 1,50,000 1,20,000 50,000
16. A manufacturer is offering a machine of Model A and B. Model A is priced as Rs 50,000 and the
running costs are estimated as Rs 7,000 each for the first four years and an increase of RS 2000
per year in the subsequent years. Model B which has the same capacity as A is priced as RS
30,000 and the running cost are estimated as Rs 12,000 each for the first four years and an
increase of Rs 3,000 per year in the subsequent years. Assuming the present worth as 8% which
machine can be purchases and why?
17. What is accounting rate of return method of project profitability analysis.

ii)Find out the average rate of return from the following data relating to CNC Machine 1 & 2
Cost : Rs. 3,00,000 each
Estimated life – 3 years each
Estimated scrap – Rs.60,000 each
Income tax rate - 50%
Additional working capital required- Rs.2,50,000 For each m/c
The estimated cash inflow after taxes for each m/c are as follows:
Year CNC m/c 1 CNC m/c 2
1 1,50,000 2,00,000
2 3,00,000 3,00,000
3 1,50,000 2,50,000
4 - 1,50,000
------------- --------------
6,00,000 9,00,000
------------- --------------
UNIT IV PART A
1. What is the difference between balance sheet and income statement? (Nov 2017)
The balance sheet is a statement that shows a detailed listing of assets, liabilities, and capital
showing the financial condition of a company on a given date but the income statement is an
important final account of a business which shows the summarized view of revenues and
expenses of a particular accounting period.
2. What is meant by balance sheet. (Nov 2017)

Balance sheet is a statement of financial position of an enterprise as at a given date, which
exhibit sit assets, liabilities, capital, reserves and other account balance at their

respective book values.

3. State the components of a balance sheet. (Nov 2016)
Two important components of a balance sheet are assets listed on the left side of the balance
sheet and the liabilities including proprietorship listed on the right. The total value of the assets
must be equal to the total value of equities.
4. Differentiate between quick ratio and current ratio. (Nov 2015)

The current ratio is a financial ratio that investors and analysts use to examine the liquidity of a
company and its ability to pay short-term liabilities (debt and payables) with its short-term
assets (cash, inventory, receivables). The current ratio is calculated by dividing current assets
by current liabilities.
The quick ratio, on the other hand, is a liquidity indicator that filters the current ratio by
measuring the amount of the most liquid current assets there are to cover current liabilities
(you can think of the “quick” part as meaning assets that can be liquidated fast). The quick
ratio, also called the “acid-test ratio,” is calculated by adding cash & equivalents, marketable
investments and accounts receivables, and dividing that sum by current liabilities.
5. What is meant by reserves and surpluses in a balance sheet? (Nov 2015)

Reserve means a provision for a specific purpose. There are lots of unknown expenditures
which can occur in current year or in future. To meet such type of expenses the business firm
has to make the reserves. By maintaining the reserves, actual position of the profit and loss of
any accounting year does not disturb.
Surplus is the credit balance of the profit and loss account after providing for dividends, bonus,
provision for taxation and general reserves etc. Surplus profit may also be earmarked for
special purposes such as reserves for obsolescence of plant and machinery. Balance of profit is
carried forward in next year as retained earning. General reserve can be used for distribution of
dividend among shareholders when profit is insufficient.
6. Differentiate between ordinary and preference shares. (Nov 2014)

Any shares that are not preferred shares and do not have any predetermined dividend amounts.
An ordinary share represents equity ownership in a company and entitles the owner to a vote
in matters put before shareholders in proportion to their percentage ownership in the
company.
Ordinary shareholders are entitled to receive dividends if any are available after dividends on
preferred shares are paid. They are also entitled to their share of the residual economic value of
the company should the business unwind; however, they are last in line after bondholders and
preferred shareholders for receiving business proceeds. As such, ordinary shareholders are
considered unsecured creditors.
7. Write any four financial ratios. (Nov 2013)

Current ratio: current asset/ current liability
Liquidity ratio: liquid asset/ current liability
Debt equity ratio: debt/ equity
Debtors turnover ratio: cost of sales/ bills receivables(debtors)
8. What is current ratio? Indicate the significance. (Nov 2012)

Current ratio is the ratio of current asset to the current liability. It is a liquidity ratio, which
expresses the ability of the firm to meet its short term commitments as and when they become
due. The firm is said to be comfortable in its liquidity position if the current ratio is 2:1.
9. What is income statement? Give an example. (Nov 2012)

Income sheet accounts of all income and expense items, such as sales, purchases,
depreciation, wages, salaries, taxes and insurance are maintained and these accounts are
summarized periodically in income statements.

Ex: Trading account and profit and loss account

Trading account is helpful for estimating gross profit
Profit and loss account helps in estimating net profit of the company
10. What are the advantages of financial ratios? (May 2012, Nov 2012)
Financial ratios are important figures, for determining and interpreting numerical
relationships based on financial statements. They are used to focus on the financial issues
such as profitability and solvency of a given firm.
11. What are the uses of short term solvency ratio? (May 2011)
Solvency ratio is the ratio between outsider‟s funds (debt) and insiders funds (Equity). This is
used measure the firm‟s obligation to creditors in relation to the owners funds. It is a measure
of solvency. Short term solvency ratio‟s suggests, high borrowings, for the initial period to
set up the firm.
12. Diffentiate between cash flow and fund flow. (Nov 2010)
Cash flow includes all the inputs via sales, loans, stock issues, bond releases, and capital
investments for each of the company‟s industrial operations, dividends to stockholders,
repayment of debts and other investments. Fund flow refers working capital or net working
capital input and outputs only.
13. What is trail balance? (May 2009)

It shows the balances of all the accounts. After the preparation of ledger, another statement is
to be prepared. The main purpose is to check the arithmetical accuracy of the books of
account.
14. State the turnover ratios.

The turnover ratios are: inventory turnover ratio: cost of sales/ average stock.
Debtors turnover ratio: cost of sales/ bills receivables(debtors)
Creditors turnover ratio: net purchases/ bills payable (creditors)
15. What are the elements of final accounts?

Final accounts refer to the financial statement of the company by indicating income statement
and balance sheet. Income statement consists of trading account and profit and loss
account. Balance sheet consists of assets and liabilities.
16. What is business entity concept?

The business unit is treated as a separate and distinct from the persons who owe it.
17. Mention the accounting principles.

Business entity concept, quality concept, cost concept, going concern concept, time period
concept, money measurement concept.
18. State the golden rules of accounting.

account Debit credit
Personal The receiver The giver
account
Real account What comes in What goes out
Nominal All expenses All incomes &
account & losses gains
19. What is double entry system?

Two aspects of transaction are recorded. For every debit there is a corresponding and equal
credit.

20. What is liability?

It denotes any amount which a business concern has to pay legally. It is the debts owing to
others by trader. The liability includes the proprietors capital. It is classified as long
term liabilities and current liabilities.
21. What do you mean by asset?

It is what the business owes. It is the amount spent in acquiring of some property or benefit
of a lasting nature or something that can be converted into cash. Assets may be classified as
fixed assets and current assets.
PART B
1. The balance sheet of company gives the following details. Draw the balance sheet.
Workout economic ratios and comment on the financial stability of the company.
Current Assets: 400 Lakhs Current liabilities: 85 Lakhs
Stocks and shares : 600 Lakhs Quick Assets : 225 Lakhs
Surplus : 715 Lakhs Funded debts: 200 Lakhs
Depreciation reserves: 600 Lakhs (Nov 2017, Nov 2012)
2. (i). List out the contents of a balance sheet and explain the importance of various ratios.
(ii). Construct a model income statement assuming a suitable value. (Nov 2017)
3. With suitable example construct a fund flow statement for a process industry and explain the
contents. (Nov 2017; Nov 2014)
4. Define the following and explain with suitable examples.

(i). Liquidity ratios. (ii). Leverage ratios.
(iii). Activity ratios. (iv). Profitability ratios. (Nov 2017; (Nov 2014)
5. Prepare the income statement from the following data:

Gross Sales: 200 Lakhs, Excise duty and discount: 10 Lakhs, Annual fixed cost: 70 Lakhs,
Annual variable cost: 100 Lakhs. The company expects a net profit of 12 Lakhs. The
company has to pay Rs 2 Lakhs as financial cost and decides to declare a dividend of 45% on
gross profit. Investors account for 20 Lakhs. The company gives product on loan and
accounts receivable is 15 Lakhs. Also evaluate economic ratios associated with the income
statement and comment on the status of the company. (May 2017;Nov 2012;Nov 2016)
6. (i). Mention the steps to be followed in preparing a income statement.

(ii). Differentiate a balance sheet from income statement. (Nov 2016)
7. Explain the various components of a balance sheet and discuss the use of economic ratios in
the analysis of balance sheet. (May 2016)
8. Prepare the income statement from the following data:

Gross sales: 200 Lakhs Excess duty and discount: 10 Lakhs Annual fixed cost: 70 Lakhs
Annual variable cost: 100 Lakhs The company expects a net profit of 12 Lakhs. The
company has to pay 2 lakhs as financial cost and decides to declare a dividend of 45% on
gross profit. Inventories account for 20 Lakhs. The company gives product on loan and
accounts receivable is 15 Lakhs. Evaluate the economic ratios associated with the income
statement and comment of the status of the company. (May 2017; May 2016)
9. Following data is available for a company as on 31/03/2003. Draw that balance. Evaluate the
economic ratios and comment on the stability of the company current assets: 280 Lakhs; total
liability: 1,000 Lakhs; stocks and shares 500 Lakhs. Current liabilities 200 Lakhs; Quick
assets 100 Lakhs; surplus 200 Lakhs; Royalties 20 Lakhs, Depreciation 400 Lakhs.
10. (i). Explain the principles of accounting in industries.

(ii). Describe the various components of balance sheet with example. (May 2017)
11. Explain the construction of balance sheet. (Nov 2015)
12. Explain in detail about the financial statements. (Nov 2015)
13. A chemical company shows the following accounting data: Working capital ratio 40, total
investment Rs 30 Million, current liabilities Rs 3.2 million, with no funded dept, depreciation
account of Rs 3 million, and an inventory of 5 million. Neglecting other assets, prepare a balance
sheet and compute balance sheet ratios. (Nov 2013)
14. From the balance sheet prepare common size statement and interpret.
Liabilities 2008 2009 Assets 2008 2009

Preference Capital 1,20,000 1,60,000 Land and Building 80,000 1,23,000
Equity share capital 1,50,000 4,00,000 Plant and Machinery 3, 34, 000 6,00 000
Reserve and surplus 14,000 18,000 Temp. Investment 1,000 25,000
Long term loans 1,15,000 1,30,000 Inventories 10,000 25,000
Bills Payable 2,000 -- Book debts 4,000 8,000
Sundry Creditors 12,000 4,000 Prepaid Expenses 1,000 2,000
Outstanding expenses 15,000 6,000 Prepaid expenses 1,000 2,000
Proposed dividend 10,000 90,000
-------------- ----------- ------------- -----------
4,38,000 28,08,000 4,38,000 28,08,000
-----------------------------------------------------------------------------------------------
15. On 31st March 1995, the following figures were extracted from the books of Mr. Khan. Prepare
final accounts after giving effect to the following adjustments.
Particulars Rs. Particulars Rs.
Plant & Machinery 55,000 Fixture &Fitting 1,720
Capital 90,000 Fuel & Power 542
Salaries 3,745 Lighting(Factory) 392
Sales 1,26,117 Travelling exp. 925
Carriage inwards 960 Discount 422
Drawings 6,820 Stock(1.4.1994) 21,725
Manufacture Expenses2,940 Insurance Premium 470
Cash at Bank 2,245 Cash on hand 118
Debtors 48,000 Creditors 22,880
Purchases 89,790 Wages 9,915
Rent and taxes 1,705 Office expenses 2,778
Carriages outwards 897 Purchase returns 6,172
Bills payable 6,642 Commission 260
Sales returns 522 Interest earned 80
Adjustments:
1. Depreciate @10% each on plant & machinery and on fixtures and fittings.
2. Provide for march rent unpaid Rs. 150.
3. Create 5% provision for bad and doubtful debts.
4. Outstanding wages Rs.800 and Salaries Rs.350.
5. Stock on 31st March 1995 Rs.16,580.
16. From the following information you are required to prepare a balance sheet.
1. Current ratio - 1.75
2. Liquid ratio - 1.25
3. Stock turnover ratio(cost of sales/closing stock) – 9
4. Gross profit ratio - 25%
5. Debt collection period – 1.5 months
6. Reserves and surplus to share capital – 0.2

7. Turnover to fixed assets(based on cost of sales) – 1.2

8. Capital gearing ratio – 0.6
9. Fixed assets to net worth – 1.25
10.Sales for the year – Rs.12,00,000.
UNIT V PART A
1. What are the essentials of economic balance? (Nov 2017)

Essentials of economic balance are optimization of comparing and optimizing cost and process
output. It tries to balance the cost inputs to a process with the objective of optimized output.
2. Determine the optimum thickness for a steam pipe installation annual fixed cost is given as CF
= 300s + 400 Rs/year where ‘s’ is the thickness of insulation. The annual cost of energy varies
as 100/s Rs/year. (May 2017)
Total cost = Fixed cost + Direct Cost
Tc  400  300S  100S 1
d (Tc )
 300  100S 2  0
dS
1/ 2
 100 
S   =0.58 in.
 300 
3. Define net margin and gross margin and compare. (Nov 2014)
The term gross refers to the total amount made as a result of some activity. Gross margin refers to
the total margin in the business including all indirect costs. Net refers to the amount left over after
all deductions are made. Once the net value is attained, nothing further is subtracted. Net margin
refers the amount of actually realized as profit in a business.
4. What is the necessity for economic balance in Industries? (Nov 2012)

Economic balance is the design of equipment or the selection of operation conditions whereby by
the increasing costs are balanced by the decreasing costs to give the greatest economic return. It
saves and optimizes the capital investment; hence it is necessary for industries.
5. What are the different types of economic balance?

In design, in operation, in calculation of recovery of minerals, in yields for chemical reactions, etc.
6. How to optimize the cost in production activities?

The total cost is differentiated with respect to the common variable. When the differential is set
equal to zero and solved, the optimum cost may be obtained.
7. List out the major factors that can influence the cost for heat transfer equipment.
Heat transfer area, tube diameter and gauge, tube length, pressure, materials of construction for
tubes and shell, degree and type of baffling, supports axillaries and installation are major factors that
can influence the cost for heat transfer equipment.
8. List out the initial conditions required for the design of a heat exchanger.
Design of heat exchanger requires three important input data, process fluid rate of flow, change in
temperature of the process fluid and the inlet temperature of the utility fluid.
9. List out the design objectives in the case of heat exchanger equipment.
The design objectives in the case of heat exchanger are heat transfer area, exit temperature and flow
rate of utility fluid, number length and arrangement of tubes, and tube side and shell side pressure
drops.
10. State the total cost equation for calculating economic balance in heat transfer.

UCW H
f t   , where U is the over-all constant heat transfer coefficient,
CF
f t  is a complex function of the various temperature differences
CW is cooling-water cost, dollars per lb
H is hours of operation per year
C F is annual fixed costs, dollars per ft2 of heat exchanger surface.
11. Define the term margin of safety.

Margin of safety is the safety factor that is included to accommodate accidental or emergency
situations where operating parameters may exceed the specified range.
12. List out the essential elements of economic balance.

The essential elements of economic balance are (i). Fixed and variable operating expenses (ii). An
allowance for depreciation (iii). A term for an acceptable return on an investment.
13. Name two kinds of expenses that are accounted in economic balance.
The two kinds of expenses that are accounted in economic balance are fixed expenses and variable
expenses.
14. Graphically show the relationship between total annual expenses and the thickness of
insulation.
15.
16. Give the classification of carrying out a design project.

The methods of carrying out a design project may be divided into following classifications.
Preliminary or quick estimate designs.
Detailed estimate designs
Firm process designs or detailed designs.
17. What are flow charts? Give general classification of flow charts.
The flow charts are the diagrams that show the sequence of equipment and unit operations in the
overall process, to simplify visualization of the manufacturing procedures, and to indicate the
quantities of materials and energy transfer. These diagrams may be divided into three general types
(i) Qualitative (ii). Quantitative (iii) Combined-detail.
18. State the Williams six tenth factor rule.

According to Williams six tenth factor rule, if the cost of a given unit at one capacity is known, the
cost of similar unit with X times the capacity of the first is approximately (X)0.6 times the cost of the
initial unit.
19. What are the different costs involved in installation of the equipments?
The installation of equipment involves costs for labor, foundations, supports, platforms, construction
expenses and other factors directly related to the erection of purchases equipment.
20. What are insulation costs?

When very high or very low temperature are involved, insulation factors can be important and it
may be necessary to estimate insulation with great deal of care. These expenses for equipment
insulation and piping insulation are generally termed as insulation costs.
21. What are annuities? Give an example.

An annuity is a series of equal payment occurring at equal time intervals. Payments of this type can
be used to pay off a debt, accumulate a desired amount of capital or receive a lump sum of capital
that is due in periodic installments as in some life insurance plans.
22. What is the present worth of an annuity?

The present worth of an annuity is defined as the principal which would have to be invested at the
present time at compound interest rate i to yield a total amount at the end of the annuity term equal
to the amount of the annuity.
PART B
1. Explain the economic balance with examples for the following operations.
(i). Heat transfer
(ii). Insulation (May 2017;Nov 2017)
2. With a case study explain the economic balance approach for an evaporation operation. (Nov 2017)
3. Explain the economic balance for heat transfer with an example. (Nov 2017;Nov 2013)
4. (i). Explain how the optimization studies could be made in a batch process with a suitable example.
(ii).Explain the usefulness of economic balance in a process industry. Discuss with a suitable
example. (May 2017)
5. (i). Differentiate batch and cyclic operations with suitable examples.

(ii). Explain the economic balance on unit operations with multiple variables. (Nov 2016)
6. Lubricating oil is to be extracted using phenol as solvent to remove naphthenic materials. The cost
of solvent to charge ratio R have been found to vary as CF = 9300(R-3)2 + 25000 Rs/Yr. where
R = Kg of solvent/Kg of feed. The direct cost CD vary with the amount of solvent redistilled at Rs
0.2/Kg of solvent which includes solvent make up. A stock of 300 Kg/day is to be processed 320
days/year. Find the economic solvent to charge ratio R and the combined annual direct and fixed
costs.
7. Explain the economic balance for insulation with an example. (Nov 2013)
8. The annual fixed costs for insulating a certain steam pipe installation can be expressed as
C F  30S  40 dollars per year, where S is thickness of insulation may be expressed in terms of the
100
insulation thickness as C D  dollars per year. Determine algebraically the optimum annual
s
insulation thickness cost.
9. What is the most economical number of effects to use in the recovery of black liquor in a paper
plant if the following cost data are available? The annual fixed costs increase essentially linearly
with each effect (except for condensing, feeding, and other equipment costs for multiple units which
may be considered to balance each other). If a fixed amount of evaporation is to be obtained and
each unit is to have 1,000 ft2 of heating surface with a service life of 5 years, the annual fixed costs
0.6
 1,000  25,000
CF    N dollars per year, where N is the number of effects.Because of the
 5,000  5
steam economy in multiple-effect operation, the direct costs for esteem will decrease and the total of

all annual direct costs, C D , has been established for this type of operation as C D  65,000N 0.95
dollars
10. What is the optimum size of installation to process the spirit worth Rs.20/litre, when , the
installation costs are Rs.26,000Q0.75 with Q in litre/batch to make 2 lakhs litres of spirit per year.
The startup cost for each batch is Rs.6,000 and the operating cost vary as 1/125[Q/1000] 1.45 in
rupees per hour. Life of the equipment is 12 years.
(Nov/Dec. 2011)
11. Determine the optimum insulation thickness for a stream pipe installation if annual fixed cost is give
as CF=300S+400 Rs/year, where „S‟ is the thickness of insulation. The annual cost of energy varies
as 100/SRs./year.
(Nov/Dec. 2011)
12. What is the most economical number of evaporates to be used for concentrating 6,60,000 Kg/day of
liquor containing 5% solids to a concentration of 55% of solids in multiple effect evaporator
system? A single effect evaporator body costs Rs. 45,000 exclusive of other accessories like pumps
which are independent of number of effects. The annual fixed charges are 30% on the cost of
installation. The cost of steam is Rs. 2 per 1000Kg. Assume 0.8 N Kh evaporation takes place per
Kg of steam feed where N is the number of effects. The evaporator operates for 24 hours and 300
days in a year. The labour and other costs are independent of number of effects.
(Nov/Dec. 2011)
13. Methyle alcohol condensed at 1480 F is to be cooled to 1000F for storage at a rate of 10,000 gal/hr
by water available at 750F in a countercurrent heat exchanger. The overall heat transfer coefficient
is constant and estimated at 200 Btu/ft2-hr-0F. Heat exchanger annual costs including operation are
estimated at $2 per ft2 including depreciation. The cooler is to operate 5,000 hr/year, and the value
of heat utilized is estimated at $5 x 10-7 per Btu. What is the estimated optimum cost of the heat
exchanger if the cost for surface is $9 per ft?

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Joseph’s College of Engineering Department of Chemical Engineering

St. JOSEPH’S COLLEGE OF ENGINEERING

1. Give two examples of types of organization. (Nov 2017)

4. Define the term controlling in management. (May 2017)

5. Define inventory. (Nov 2017, Nov 2013)

6. What is inventory control? Give any two examples. (May 2017)

7. What are the different types of organizations? (May 2017)

8. Define motion economy. (Nov 2016)

Process Economics CH 2251 Question Bank 2015-16 Page 1

9. Define Planning. (Nov 2012)

10. What are the different types of communication? (Nov 2012)

11. What is Method Study? (May2012)

12. Explain the principles of Management. (May 2012)

13. What is Work Study? (May 2012)

15. Define the span of management? (Nov 2011)

16. What is SIMO chart? (Nov 2011)

18. What is meant by upward communication? (Nov 2010)

Process Economics CH 2251 Question Bank 2015-16 Page 2

Basically there are three types of forecasting techniques.

20. What are the qualities of leader?

21. Differentiate between centralization and decentralization.

22. Define staffing.

23. What is co-ordination?

24. What are the techniques for controlling?

1. (i). Identify the general steps in forecasting process and explain.

4. Explain: (i). Routing (ii). Scheduling (iii). Dispatching

5. (i). Briefly discuss the communication process models.

Process Economics CH 2251 Question Bank 2015-16 Page 3

7. (i). Explain the various types of organizations.

8. (i). Explain the steps involved in motion study.

9. With suitable examples explain the functions of a manager. (May 2016)

10. Explain the techniques of work measurement. (May 2016)

16. (i). Discuss the significance of budget as a controlling technique.

1. Mention two types of depreciation. (Nov 2017)

2. What are the main components of working capital? (Nov 2017)

3. Define BEP (Nov 2017, Nov 2012)

5. Give any four examples of fixed cost. (Nov 2016)

6. Differentiate between depreciation and depletion. (Nov 2016)

Process Economics CH 2251 Question Bank 2015-16 Page 4

7. Define profitability. (Nov 2016)

9. What is the time value of money? (Nov 2012)

10. What are the causes of depreciation? (Nov 2012)

11. Define Depreciation. (Nov/Dec2012)

12. What do you mean by annuity method of depreciation?

14. Define straight line method of depreciation accounting.

15. What is cost of capital?

16. What is working capital?

Process Economics CH 2251 Question Bank 2015-16 Page 5

17. What are the different types of depreciation?

18. State the elements of cost.

19. Briefly explain the components of manufacturing cost.

21. Mention the different types of costing.

22. State the sources of working capital

23. What are the factors that influence working capital?

24. Define the present value concept.

1. Explain the methods of determining depreciation. (Nov 2017)

Process Economics CH 2251 Question Bank 2015-16 Page 6

11. (i). Explain how to determine the value of money.

Process Economics CH 2251 Question Bank 2015-16 Page 7

Allow 8% for contingencies. (Nov 2011)

UNIT III PART A

3. Give any four examples of intangible assets. (Nov 2017)