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 — 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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