Work In Progress - WIP

Work In Progress - WIP

Material that has entered the production process but is not yet a finished product. Work in progress (WIP) therefore refers to all materials and partly finished products that are at various stages of the production process. WIP excludes inventory of raw materials at the start of the production cycle and finished products inventory at the end of the production cycle.

Also referred to as "work in process."

For accounting purposes, work in progress is considered as a current asset on the balance sheet. WIP is generally valued higher than raw materials, but significantly lower than finished products.

Most companies strive to keep the actual amount of work in progress as low as possible, so as to reduce the amount of capital tied up in the production or manufacturing process. Another reason to keep WIP low is to reduce the risk of obsolescence, especially in fast-moving sectors such as technology and consumer electronics.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Work in progress — Work in Progress, ou Work in Process, acronyme WIP, est une locution anglaise fréquemment utilisée en français ainsi que dans d autres langues et qui désigne un encours de production, un travail en cours, non terminé et ayant requis un… …   Wikipédia en Français

  • work in progress — /ˌwɜ:k ɪn prəυgres/ noun the value of goods being manufactured which are not complete at the end of an accounting period ● Our current assets are made up of stock, goodwill and work in progress. Abbreviation WIP (NOTE: The US term is work in… …   Dictionary of banking and finance

  • work in progress — /ˌwɜ:k ɪn prəυ gres/ noun the value of goods being manufactured which are not complete at the end of an accounting period ● Our current assets are made up of stock, goodwill and work in progress. Abbr WIP (NOTE: American English is work in… …   Marketing dictionary in english

  • work in progress — WIP Materials, parts, and unfinished products within an operating system, in which they represent locked up capital. Just in time techniques aim to minimize WIP, while more traditional systems see WIP as necessary to provide a head of work. WIP… …   Big dictionary of business and management

  • work in progress — WIP The balance of partly finished work remaining in a manufacturing operation or a long term contract at a particular time. It is normally valued at the lower of cost or net realizable value, using either the first in first out cost, the last in …   Accounting dictionary

  • work-in-progress — WIP An alternative term for *work in process, used in the United Kingdom and other countries with a history of British influence …   Auditor's dictionary

  • WIP — written abbreviation for work; work * * * WIP UK US noun [U] ACCOUNTING ► ABBREVIATION for WORK IN PROGRESS(Cf. ↑work in progress) …   Financial and business terms

  • WIP — or Wip may refer to:* WIP (AM), a radio station (610 AM) licensed to Philadelphia, Pennsylvania, United States * Wip, a small talking sentient dragon who is a character in the CGI series Xcalibur * WIP (Wiskott Aldrich Sydrome Protein)… …   Wikipedia

  • WIP — Wîp bezeichnet im Mittelhochdeutschen eine nichtadelige verheiratete Frau (siehe frouwe) WIP bezeichnet den Reduzierten Wechsler Intelligenztest das Wissenschaftler Integrations Programm Work in progress …   Deutsch Wikipedia

  • WIP — Work In Progress (Business » General) Work In Progress (Governmental » US Government) Work In Progress (Governmental » Military) * Works In Progress (Business » General) * Work In Process (Business » Accounting) * Work In Process (Business »… …   Abbreviations dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”