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.

Look at other dictionaries:

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  • work in progress — UK US noun (US also work in process) ► [C or U] something that is being developed or suggested but that is not yet complete: »The Senate Minority Leader described the team reorganization as a work in progress . be (still)/remain a work in… …   Financial and business terms

  • Work in progress — „Work in progress“ (dt.: laufende Arbeit) ist die allgemeine Bezeichnung für ein unvollendetes, noch aktuelles Werk oder ein Werk ohne Absicht auf Vollendung (siehe auch Prozesskunst und Generative Kunst) der Arbeitstitel des Buches „Finnegans… …   Deutsch Wikipedia

  • work in progress — /work imˈprɔɡres, ingl. wYːkɪnˈprəuɡrɛs/ [loc. ingl., propr. «opera, lavoro (work) in (in) corso (progress)»] loc. sost. m. inv. opera aperta …   Sinonimi e Contrari. Terza edizione

  • work in progress — Services or supplies which are in the course of being completed and to which a value is ascribed based on expected value or revenue. Easyform Glossary of Law Terms. UK law terms …   Law dictionary

  • work in progress — noun a) Work that has been commenced, but is not complete. All the efforts to make a New Man are still work in progress. b) A project that has been commenced but is not complete. Reorganizing my office is a work in progress …   Wiktionary

  • work-in-progress — N UNCOUNT In book keeping, work in progress refers to the monetary value of work that has not yet been paid for because it has not yet been completed. [BUSINESS] ...five million pounds worth of finished goods and two million pounds worth of work… …   English dictionary

  • work-in-progress — adjective Attributive use of work in progress as adjective. Weve worked hard to reduce work in progress inventory by speeding up production …   Wiktionary

  • work-in-progress — atliekamas darbas statusas T sritis Gynyba apibrėžtis Darbas, kuris yra pradėtas, bet dar nebaigtas. atitikmenys: angl. work in progress šaltinis NATO mokymų ir pratybų finansavimo terminų žodynas AAP 43(1), 2009 …   Lithuanian dictionary (lietuvių žodynas)

  • work in progress — noun a piece of work that is not yet finished (Freq. 1) • Hypernyms: ↑work, ↑piece of work * * * : work with which an artist or writer is engaged but which is not completed or approaching completion …   Useful english dictionary

  • work in progress — (U.K.) Fin = work in process …   The ultimate business dictionary

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