Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 17 - Process Costing - Assignment Material - Questions - Page 696: 17-4

Answer

Estimating the degree of completion for semiconductor chips in a semiconductor plant can be problematic due to variations in finishing, process complexity, and unpredictable work requirements. Skill and precision are required for accurate estimation.

Work Step by Step

Problems in estimating the degree of completion of semiconductor chips in a semiconductor plant can arise due to various factors: 1. Variability in Finishing: Semiconductor chips may require different levels of finishing to become final products. Estimating the degree of completion accurately can be challenging, as the finishing work may vary significantly among different chips. 2. Complexity of the Process: The semiconductor manufacturing process can be intricate and may involve multiple stages. Determining the exact extent of completion at each stage can be complex and may require a high degree of skill and precision. 3. Unpredictable Work Requirements: The amount of work needed to finish a semiconductor chip may not always be evident in advance. It can depend on various factors and unexpected issues that arise during the production process.
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