Q.1 Which of the following factors influence the production cost of electrical energy?
    A. cost of land and equipment
    B. interest on capital investment
    C. depreciation of equipment
    D. all of the above
Ans.: D

Q.2 The art of determining the per unit cost of production of electrical energy is known as____
    A. depreciation
    B. economics of power generation
    C. salvage value
    D. all of the above
Ans.: B

Q.3 The decrease in the value of the power station equipment and buildings due to constant use is known as
    A. capital investment
    B. interest of borrowed money
    C. Depreciation
    D. all of the above
Ans.: C

Q.4 The cost of electrical energy is divided into ____
    A. Fixed cost
    B. Semi fixed cost
    C. Running cost
    D. all of the above
Ans.: D

Q.5 The cost which is independent of maximum demand and units generated is known as___
    A. Fixed cost
    B. Semi fixed cost
    C. Running cost
    D. interest
Ans.: A

Q.6 The fixed cost is due to
    A. annual cost of central organization
    B. interest on capital cost of equipment and building
    C. taxes, salaries of management and clerical staffs
    D. all of the above
Ans.: D

Q.7 The cost which depends only on the number of units generated is known as____
    A. Running cost
    B. Semi fixed cost
    C. fixed cost
    D. interest on capital investment
Ans.: A

Q.8 Semi fixed cost is a cost which ____
    A. depend maximum demand
    B. independent of unit generated
    C. Both A and B
    D. depends of unit generated and independent on maximum demand
Ans.: C

Q.9 Running cost is cost due to___
    A. annual cost of fuels
    B. lubricating oil cost, maintenance cost
    C. repairs and salaries of operating staff
    D. all of the above
Ans.: D

Q.10 Semi fixed cost is depend on
    A. annual interest of borrowed money
    B. depreciation on capital investment of equipment and building
    C. taxes, salaries of management and clerical staff
    D. all of the above
Ans.: D

Q.11 Which of the following is true?
    A. Running cost is directly proportional to the number of unit generated
    B. Semi fixed cost is directly proportional to the maximum demand on the power station
    C. Both A and B
    D. neither A or B
Ans.: C

Q.12 Due to depreciation the value of building and equipment and other properties is ___
    A. increase
    B. decrease
    C. remains same throughout its useful life
    D. none of the above
Ans.: B

Q.13 Which of the following methods is/are used for determining of depreciation charge?
    A. Straight line method
    B. Diminishing value method
    C. Sinking fund method
    D. all of the above
Ans.: D

Q.14 A method in which a constant depreciation charge is made every year on the basis of total depreciation and the useful life of the property is known as____
    A. Straight line method
    B. Diminishing value method
    C. Sinking fund method
    D. all of the above
Ans.: A

Q.15 Annual depreciation charge by the straight line method is given as____
    A. Annual depreciation charge = Total depreciation / Useful life
    B. Annual depreciation charge = Useful life / Total depreciation charge
    C. Annual depreciation charge = Total depreciation charge
    D. Annual depreciation charge = Useful life / Salvage value
Ans.: A