BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Work in Process-the value of work performed, but not yet bill/invoiced
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Work in Progress-the amount of work that is going on during an engagement
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Detailed explanation-1: -Work in progress (WIP), also called work in process, is inventory that has begun the manufacturing process and is no longer included in raw materials inventory, but is not yet a completed product. On a balance sheet, work in progress is considered to be an asset because money has been spent towards a completed product.
Detailed explanation-2: -Work in process (WIP) inventory refers to the total cost of unfinished goods currently in the production process at the end of each accounting period. It is also considered a current asset on a company’s balance sheet.
Detailed explanation-3: -Work-in-progress (WIP) is billable time and expenses that have not yet been included on a final client invoice. Although the work was already completed or the expenses were already incurred, it is called work-in-progress because it is in progress of being billed.
Detailed explanation-4: -A WIP inventory value is the total cost of all unfinished goods in process. It’s every cost associated with every stage of production, including raw materials, overhead, and labour costs.