WIP inventories are
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 associated with manufacturing, as they refer to partially completed products that are still being processed before becoming finished goods. They are typically shown on the balance sheet as an inventory account. VMI (vendor-managed inventory) is a different type of inventory management system, and EOQ (economic order quantity) is a model for determining optimal inventory levels for a given product. WIP inventories can be impacted by EOQ, as the model can help determine the most efficient production quantities and timing to minimize WIP inventories.

WIP Inventories Are