BUISENESS MANAGEMENT
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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Either A or B
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None of the above
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Detailed explanation-1: -What Is a Work-in-Progress (WIP)? The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion. WIP refers to the raw materials, labor, and overhead costs incurred for products that are at various stages of the production process.
Detailed explanation-2: -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-3: -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-4: -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-5: -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.