Firms that offer service cannot have Work-in-Process Inventory.

Question

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Service firms may have Work-in-Process (WIP) Inventory, which represents the work that is in progress but not yet completed. This can include tasks such as appointments or consultations that have been scheduled but not yet completed, or projects that are still in development. However, the amount of WIP inventory is typically lower for service firms compared to manufacturing firms, as service delivery is usually more immediate and doesn't require extensive processing of materials.

Firms That Offer Service Cannot Have Work-In-Process Inventory