WIP inventories
A) not included on the balance sheet.
B) are associated with manufacturing.
C) are the same as VMI inventories.
D) are not impacted by EOQ.

Question

Quizplus · Accepted Answer

WIP (work-in-progress) inventories are a type of inventory that is associated with the manufacturing process. These inventories represent partially completed products that are in the process of being manufactured. They are not included on the balance sheet until they are completed and ready to be sold as finished goods. WIP inventories are not the same as VMI (vendor-managed inventory) inventories, which are managed by a supplier rather than the customer. WIP inventories are impacted by EOQ (economic order quantity) calculations, which determine how much inventory should be produced or ordered at a given time to minimize costs.

WIP Inventories