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Chapter 3 - Plant Economy

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Quiz on Untitled, created by Kyllie Kylle on 27/07/2016.
Kyllie Kylle
Quiz by Kyllie Kylle, updated more than 1 year ago
Kyllie Kylle
Created by Kyllie Kylle almost 10 years ago
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Resource summary

Question 1

Question
The [blank_start]revenue[blank_end] of the industrial plant is that portion of the manufacturing returns which cost accounting indicates as the portion of the production costs assignable to the power used.
Answer
  • revenue

Question 2

Question
The [blank_start]revenues[blank_end] of the public service plant are derived directly from the customers it serves.
Answer
  • revenues

Question 3

Question
A [blank_start]franchise[blank_end] is an exclusive right to provide the specific product or service in a stated region.
Answer
  • franchise

Question 4

Question
The electric service industry operates under [blank_start]monopoly[blank_end] conditions by reason of the long-term franchises granted to the individual companies.
Answer
  • monopoly

Question 5

Question
Of all methods of taxation, that method which will receive least public opposition is the one whereby the payment methods are spread out in [blank_start]small installments[blank_end] and attached to the purchase price of some inexpensive, widely used commodity.
Answer
  • small installments

Question 6

Question
Only by considering [blank_start]all[blank_end] the elements entering into the cost of power will a fair, economic comparison be made.
Answer
  • all

Question 7

Question
That an industry will install its own power plant if the utility rates are favorable is a competitive aspect always present in the supply of power by a utility company to an industry.
Answer
  • True
  • False

Question 8

Question
The rate of charge for electrical energy should satisfy the following conditions: [blank_start]fairness[blank_end], [blank_start]simplicity[blank_end], and [blank_start]cost[blank_end]
Answer
  • fairness
  • cost
  • simplicity

Question 9

Question
the rate should distribute the costs where they rightfully belong, taking full account of the variable conditions of the customer's demands.
Answer
  • True
  • False

Question 10

Question
The rate should not be so complicated as to cause opposition or antagonism from a public which is frequently distrustful of "new fangled ideas".
Answer
  • True
  • False

Question 11

Question
The financial outlay in meters and cost accounting systems by the electric company should not be so heavy as to increase costs to more than can be saved by their installation.
Answer
  • True
  • False

Question 12

Question
[blank_start]Principal items[blank_end] comprising the capital cost of power plant will include preliminary costs, real estate, buildings and equipment, engineering fees, among others.
Answer
  • Principal items

Question 13

Question
A certain amount of power plant maintenance is required whether any energy is produced or not.
Answer
  • True
  • False

Question 14

Question
The [blank_start]energy element[blank_end], sometimes called operationing cost to distinguish it from the fixed costs of the investment element, is based on the energy output measure in kWh.
Answer
  • energy element

Question 15

Question
Labor is a large part of the cost of a kWh.
Answer
  • True
  • False

Question 16

Question
At present, the labor requirement of the average steam central station larger than 10,000 kW is about [blank_start]one[blank_end] employee for each [blank_start]1000 kW[blank_end] installed capacity.
Answer
  • one
  • 1000 kW

Question 17

Question
The [blank_start]reserve capacity[blank_end] carried is largely dependent upon the interconnections of the system and upon the policies of the management of those responsible for the system operation.
Answer
  • reserve capacity

Question 18

Question
To be "[blank_start]ready to serve[blank_end]" is a state required of the public service plant and of some industrial plants.
Answer
  • ready to serve

Question 19

Question
The extent and, therefore, the cost of the secondary distribution system are proportional to the number of customers it serves.
Answer
  • True
  • False

Question 20

Question
The franchise cost depends less on the time and circumstances surrounding the granting of the franchise than on the actual value of the franchise itself.
Answer
  • True
  • False

Question 21

Question
The [blank_start]straight line method[blank_end] is based on the assumption that depreciation occurs according to the a straight line law.
Answer
  • straight line method

Question 22

Question
The largest component of the fixed charge is the amount to be collected and set aside in a fund which, through the useful life of the plant, will accumulate a sum equivalent to the money borrowed for investment.
Answer
  • True
  • False

Question 23

Question
The [blank_start]depreciation[blank_end] is caused by age of service, wear and tear of machinery, among others.
Answer
  • depreciation

Question 24

Question
In the [blank_start]sinking fund method[blank_end], a fixed predetermined sum is set aside each year and interest compounded on it periodically. The fixed sum must be such that the total annual installments plus the interest accumulations will equal the total depreciation.
Answer
  • sinking fund method

Question 25

Question
The [blank_start]depreciation[blank_end] becomes the sum to replace the worn article.
Answer
  • depreciation

Question 26

Question
In depreciation accounting, the accounting for depreciation is always a representation of the actual depreciation itself.
Answer
  • True
  • False

Question 27

Question
Rate schedule should be simple.
Answer
  • True
  • False

Question 28

Question
Rate schedule should be uniform over small territorial areas.
Answer
  • True
  • False

Question 29

Question
Distribution of cost in such a way that persons creating a desirable and relatively inexpensive type of load may enjoy the full use and benefit of electrical appliance.
Answer
  • True
  • False

Question 30

Question
[blank_start]Straight line meter rate[blank_end]. The term straight line indicates that the price charged per unit is constant, that is, does not vary on account of an increase or decrease o the number of units. it is the simplest of all rates.
Answer
  • Straight line meter rate

Question 31

Question
[blank_start]Block meter rate[blank_end]. The term block indicates that a certain specified price per unit is charges for all or any part of the a block of such units, and reduced prices per unit are charged for all or any part of the succeeding units thereof. Its principal defect is that it lacks a measure of customers demands.
Answer
  • Block meter rate

Question 32

Question
The term [blank_start]flat demand[blank_end] applies to a charge of electric service based upon customer's installation of energy consuming devices.
Answer
  • flat demand

Question 33

Question
[blank_start]Block Hopkins Demand Rate[blank_end]. A demand charge based on a maximum kW per month, plus a follow on energy block rate.
Answer
  • Block Hopkins Demand Rate

Question 34

Question
When a customer charge introduced in Hopkinson Demand rate, it becomes [blank_start]three charge rate[blank_end] or [blank_start]Doherty rate[blank_end].
Answer
  • three charge rate
  • Doherty rate
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