Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is____________________?

Question

Accepted Answer

Fabricated equipment and machinery. The cost index for chemical plants is heavily influenced by the cost of major structural and mechanical items like fabricated equipment. These form a significant part of the total plant cost.