What are partially finished products in various stages of completion called?

Partially finished products in various stages of completion are known as Work In Process Inventory (WIP). This classification encompasses items that are in the midst of the manufacturing process but are not yet complete. WIP includes those materials that have begun the transformation process but still require further work before they can be sold as finished goods.

Understanding WIP is crucial for managing operations, as it helps businesses track production progress, allocate resources appropriately, and manage costs effectively. This category is vital for assessing the efficiency of production processes, as it can reflect bottlenecks or delays in manufacturing, informing decisions that can improve operational performance. On the other hand, finished goods inventory refers to products that are complete and ready for sale, whereas raw materials are the basic inputs that have not been processed at all. Final products represent the end result of the manufacturing process, distinct from those that are still in progress.