{"id":999973199,"date":"2025-05-06T18:49:09","date_gmt":"2025-05-06T11:49:09","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999973199"},"modified":"2026-06-03T23:38:04","modified_gmt":"2026-06-03T16:38:04","slug":"what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/","title":{"rendered":"What is work in progress? How to account for and optimize work in progress"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Work in progress is not just a \u201cpending number\u201d \u2013 it is an ongoing financial health indicator. Good work in progress management is a solid foundation for sustainable business development.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article by Bizzi will provide the most detailed information about what work in progress is and how to account for work in progress to improve business efficiency.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Chi_phi_do_dang_la_gi\" >What is work in progress?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Phan_Biet_Chi_Phi_Do_Dang_Voi_Cac_Loai_Chi_PhiTai_San_Khac\" >Distinguishing Work-in-Progress from Other Types of Costs\/Assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Tam_quan_trong_cua_viec_xac_dinh_chi_phi_do_dang_la_gi\" >What is the importance of determining work in progress?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Phan_loai_chi_phi_do_dang\" >Classification of work in progress\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Phuong_phap_xac_dinh_va_tinh_toan_gia_tri_san_pham_do_dang_cuoi_ky\" >Method of determining and calculating the value of unfinished products at the end of the period\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Huong_dan_hach_toan_chi_phi_do_dang_TK_154\" >Instructions for accounting for unfinished costs (Account 154)\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Giai_phap_toi_uu_va_quan_ly_hieu_qua_chi_phi_do_dang_la_gi\" >What is the optimal solution and effective management of work in progress costs?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Nhung_kho_khan_thuong_gap_trong_viec_quan_ly_chi_phi_do_dang\" >Common difficulties in managing work in progress costs\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Bizzi_Expense_%E2%80%93_Giai_phap_hien_dai_ho_tro_toi_da_doanh_nghiep_trong_quan_ly_va_toi_uu_chi_phi_do_dang\" >Bizzi Expense \u2013 Modern solution to support businesses in managing and optimizing unfinished costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-fixed-cost-how-to-calculate-and-optimize-fixed-cost\/#Ket_Luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_do_dang_la_gi\"><\/span><b>What is work in progress?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Work in progress <\/span><i><span style=\"font-weight: 400;\">Work in Process Cost<\/span><\/i><span style=\"font-weight: 400;\"> or <\/span><i><span style=\"font-weight: 400;\">Work in Progress Cost<\/span><\/i><span style=\"font-weight: 400;\">) is a type of cost that arises during the production\/business period but is related to products and services. <\/span><i><span style=\"font-weight: 400;\">unfinished<\/span><\/i><span style=\"font-weight: 400;\"> at the end of the period. This is part of inventory, specifically work in progress inventory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example: A company manufactures tables and chairs. At the end of April, they are processing 20 tables, each of which is about 70% complete. All the costs that have gone into it (wood, paint, labor) are called work in progress costs.<\/span><\/p>\n<figure id=\"attachment_999973200\" aria-describedby=\"caption-attachment-999973200\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999973200 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi.jpg\" alt=\"What is the Bizzi fee?\" width=\"900\" height=\"450\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi.jpg 900w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-300x150.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-768x384.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-18x9.jpg 18w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption id=\"caption-attachment-999973200\" class=\"wp-caption-text\">Work in progress is a type of cost that is incurred during the production period.<\/figcaption><\/figure>\n<p><b>The nature of work in progress\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Work in progress reflects the economic value of raw materials, labor, and manufacturing overhead used to create an unfinished product. The nature of work in progress includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Temporary and transitional: Work in progress costs do not exist for a long time. When the product is completed, these costs will be transferred to the cost of the finished product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reflects the actual production status: Helps businesses know the remaining workload, avoiding incorrect assessment of production efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As part of the costs that have been incurred: Even though the product is not yet completed, costs such as raw materials used, workers used, electricity and water consumed, etc. are all actual costs and need to be recorded.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Impact on cost of goods sold: If work in progress is calculated incorrectly, it will affect cost of goods sold, thereby distorting profits and financial statements.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phan_Biet_Chi_Phi_Do_Dang_Voi_Cac_Loai_Chi_PhiTai_San_Khac\"><\/span><b>Distinguishing Work-in-Progress from Other Types of Costs\/Assets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is extremely important to distinguish work in progress from other types of costs or assets to avoid misrecognition in accounting books and financial statements. Below is a comparison table and detailed explanation for you to visualize:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Work in progress vs. Completed manufacturing costs<\/b><\/li>\n<\/ul>\n<table style=\"height: 104px;\" width=\"948\">\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Work in progress<\/b><\/td>\n<td><b>Completed manufacturing costs<\/b><\/td>\n<\/tr>\n<tr>\n<td>Product status<\/td>\n<td>Unfinished product<\/td>\n<td>Finished product<\/td>\n<\/tr>\n<tr>\n<td>Accounting position<\/td>\n<td>Assets (in inventory)<\/td>\n<td>Can be converted to cost of goods sold when sold<\/td>\n<\/tr>\n<tr>\n<td>Purpose<\/td>\n<td>Track work in progress value<\/td>\n<td>Calculate official product cost<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b>Work in progress vs. Selling &amp; administrative expenses<\/b><\/li>\n<\/ul>\n<table style=\"height: 234px;\" width=\"944\">\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Work in progress<\/b><\/td>\n<td><b>Selling\/Administrative expenses<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Purpose<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Create physical products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Business Support<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Nature<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Accumulation in inventory<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Immediately included in accounting period costs<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Reporting location<\/span><\/td>\n<td><span style=\"font-weight: 400;\">In stock<\/span><\/td>\n<td><span style=\"font-weight: 400;\">In the income statement (operating expenses)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b>Work in progress vs. Raw materials inventory<\/b><\/li>\n<\/ul>\n<table style=\"height: 108px;\" width=\"945\">\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Work in progress<\/b><\/td>\n<td><b>Raw materials inventory<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Usage status<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Already in production<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not used, still in stock<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Note<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Group by product\/stage<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Record by type and quantity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Price impact<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes, because it is creating a product.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No effect on price yet<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Work in Progress vs. Prepaid Expenses (Current Assets)<\/span><\/p>\n<table style=\"height: 102px;\" width=\"942\">\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Work in progress<\/b><\/td>\n<td><b>Prepaid expenses<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Purpose<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Related to the product being manufactured<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Allocate over multiple periods (rent, insurance, repairs\u2026)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Note<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Attached to the production process<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Associated with service time<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">For example<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cost of processing unfinished chairs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Office rental fee paid in advance for 6 months<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b>Work in progress vs. Fixed assets<\/b><\/li>\n<\/ul>\n<table style=\"height: 103px;\" width=\"942\">\n<tbody>\n<tr>\n<td><b>Criteria<\/b><\/td>\n<td><b>Work in progress<\/b><\/td>\n<td><b>Fixed assets<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Nature<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Temporarily, will convert to product cost<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Long lasting, use &gt;1 year<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Note<\/span><\/td>\n<td><span style=\"font-weight: 400;\">In inventory (short term)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">On the fixed asset accounting books<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Depreciation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No depreciation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Depreciation over time of use<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Tam_quan_trong_cua_viec_xac_dinh_chi_phi_do_dang_la_gi\"><\/span><b>What is the importance of determining work in progress?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Accurately determining work in progress is critical to accounting and business management. Here are the key reasons why it is important to do this carefully:<\/span><\/p>\n<p><b>Ensure the correctness of product prices<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Work-in-progress is a part of the product cost. Work-in-progress at the end of the period is the basis for determining the value of finished products in stock during the period (Cost = Work-in-progress at the beginning of the period + Work-in-progress incurred during the period - Work-in-progress at the end of the period). If calculated incorrectly:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The price will be higher or lower than the actual price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Causes distortion of profits leading to financial statements not reflecting true operating performance.<\/span><\/li>\n<\/ul>\n<p><b>Management decision support<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine production efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production planning, process adjustment, product pricing, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detect unnecessary waste or backlog in production.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999973201\" aria-describedby=\"caption-attachment-999973201\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999973201 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-1.jpg\" alt=\"What-is-bizzi-cost-1\" width=\"1024\" height=\"800\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-1.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-1-300x234.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-1-768x600.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-1-15x12.jpg 15w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-999973201\" class=\"wp-caption-text\">Accurate determination of work in progress is very important in accounting and business administration.<\/figcaption><\/figure>\n<p><b>Serving accurate financial reporting<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial statements must accurately reflect the value of inventories (including work in progress).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Work in progress affects cost of goods sold (COGS) and profit. If COGS is incorrectly recorded, it will result in gross profit and final profit being incorrect.<\/span><\/li>\n<\/ul>\n<p><b>Minimize accounting fraud and risk<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Some businesses deliberately adjust work in progress costs to &quot;beautify&quot; their financial reports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accurate identification helps to tighten controls and reduce the risk of error or fraud.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phan_loai_chi_phi_do_dang\"><\/span><b>Classification of work in progress\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Work in progress in production can be classified from many different perspectives, depending on management or accounting purposes. Not only understanding what work in progress is, but also classifying work in progress will help identify the right costs in different types of businesses.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Classification by product cost elements<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here is the basic classification according to the nature of the cost:<\/span><\/p>\n<table style=\"height: 127px;\" width=\"932\">\n<tbody>\n<tr>\n<td><b>Cost Type<\/b><\/td>\n<td><b>Content<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct material cost<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Value of raw materials used for products but not yet completed.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct labor costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Salaries and other payments to workers directly involved in production.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">General manufacturing costs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Indirect costs such as electricity, water, machinery depreciation, workshop management costs, etc.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b>Classification by stage, product status<\/b><\/li>\n<\/ul>\n<table style=\"height: 214px;\" width=\"935\">\n<tbody>\n<tr>\n<td><b>Type<\/b><\/td>\n<td><b>Describe<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress at the beginning of the period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Is the cost related to unfinished products existing from the previous period.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress incurred during the period<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Is the cost incurred in the current period to produce the product.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">End of period work in progress<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Is the manufacturing cost of unfinished products at the end of the period<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b>Classification by department or manufacturing process<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For businesses with multiple production stages:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Type<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Describe<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress cost by stage<\/span><\/td>\n<td><span style=\"font-weight: 400;\">For example: cutting - sewing - finishing, each stage has its own unfinished cost.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress cost by department\/workshop<\/span><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\"><b> Classification by cost aggregation object<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For management by specific product or order:<\/span><\/p>\n<table style=\"height: 186px;\" width=\"940\">\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Type<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Describe<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress by product<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Each product type has its own work in progress cost.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Work in progress by order\/contract<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Often applied to construction, custom garment, contract manufacturing.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Phuong_phap_xac_dinh_va_tinh_toan_gia_tri_san_pham_do_dang_cuoi_ky\"><\/span><b>Method of determining and calculating the value of unfinished products at the end of the period\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Determining the value of unfinished products at the end of the period is an important step in calculating product costs and preparing accurate financial statements. Depending on the type of production and the level of management, businesses can apply many different methods.<\/span><\/p>\n<figure id=\"attachment_999973202\" aria-describedby=\"caption-attachment-999973202\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999973202 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-2.jpg\" alt=\"What-is-bizzi-cost 2\" width=\"640\" height=\"427\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-2.jpg 640w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-2-300x200.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-2-18x12.jpg 18w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-999973202\" class=\"wp-caption-text\">Determining the value of unfinished products at the end of the period is a necessary step in calculating product cost and preparing accurate financial statements.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Here are the 5 most popular and easy to understand methods:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Method<\/strong><\/td>\n<td><strong>How to calculate<\/strong><\/td>\n<td><strong>Apply<\/strong><\/td>\n<td><strong>For example<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Percentage-of-Completion Estimation Method (most common)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Value of unfinished products at the end of the period = Production cost of 1 completed product x Number of unfinished products x x Completion rate\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The completion rate of unfinished products can be determined (eg: 30%, 60%, 80%\u2026).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Easy in continuous production businesses.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cost to complete 1 product: 1,000,000 VND<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Work in progress at the end of the period: 10 products, completion rate 60%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"> Standard method (according to standard cost)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Value of unfinished products = Total cost norms according to completion rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Stable production enterprise, has established clear cost norms.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Often used in management accounting.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Raw material\/product standard: 500,000 VND<\/span><\/p>\n<p><span style=\"font-weight: 400;\">20 unfinished products, completion level 50%<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Value of unfinished materials = 500,000 \u00d7 20 \u00d7 50% = 5,000,000 VND<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct materials cost elimination method<\/span><\/td>\n<td><span style=\"font-weight: 400;\">End-of-period SPDD = Total manufacturing costs incurred - Direct material costs included in all products<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The enterprise has a short production cycle, raw materials are brought in at the beginning of the period, but the processing stage is unfinished.<\/span><\/p>\n<p>&nbsp;<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Direct method (physical inventory)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Summarize details of each unfinished product \u2192 specifically evaluate each type of cost spent (raw materials, labor, general costs...).<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Can inventory the quantity, volume, and completion rate of unfinished products at the factory.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Suitable for single piece production, production according to order.<\/span><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Average manufacturing cost allocation method<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The completion rate is not clearly defined \u2192 use the average method to allocate costs.<\/span><\/p>\n<p>&nbsp;<\/td>\n<td><span style=\"font-weight: 400;\">Total manufacturing costs during the period are allocated equally to finished and unfinished products according to equivalent output.<\/span><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>Process for Determining End-of-Period Work-in-Progress Value<\/b><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Step 1: End-of-period inventory to determine the quantity of unfinished products and the level of completion (if applying the equivalent method).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Step 2: Choose an evaluation method that is suitable for the production characteristics of the enterprise (must be consistent between periods).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Step 3: Collect total production costs incurred during the period (raw materials, finished goods, production costs).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Step 4: Apply the selected method to calculate the value of work in progress at the end of the period.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Step 5: Calculate the cost of completed products during the period.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Huong_dan_hach_toan_chi_phi_do_dang_TK_154\"><\/span><b>Instructions for accounting for unfinished costs (Account 154)\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Accounting for construction in progress using Account 154 \u2013 Cost of production and business in progress is very important in accounting for manufacturing enterprises. Below are detailed and easy-to-understand instructions for you to grasp quickly:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Account 154 is used to collect all costs related to the production process of products and services that are in progress but not completed at a given time.<\/span><\/p>\n<p><b>The structure of Account 154 is shown as follows:\u00a0<\/b><\/p>\n<table style=\"height: 208px;\" width=\"1056\">\n<tbody>\n<tr>\n<td><b>DEBIT SIDE<\/b><\/td>\n<td><b>SIDE HAS<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u2013 Collect actual costs incurred such as: raw materials, labor, general production costs...<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2013 Transfer costs when products and services are completed (transfer to account 155 \u2013 finished products; or 632 \u2013 cost price).<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Detailed accounting instructions<\/b><\/p>\n<table style=\"height: 426px;\" width=\"1048\">\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Major<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Debit Account<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Account Yes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Note<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Export raw materials for production<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">152<\/span><\/td>\n<td><span style=\"font-weight: 400;\">According to actual price of raw materials in warehouse<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Calculate direct worker salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">334<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Direct labor wages<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Deduct social insurance, health insurance, and union funds for direct workers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">338<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The prescribed deduction<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Collection of general production costs (electricity, water, machine depreciation, etc.)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">111, 112, 214, 331,\u2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Depends on the source<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">When the product is completed, transfer the cost to the finished product.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">155<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">For businesses with physical goods<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">If the product is completed and sold immediately, transfer to cost price<\/span><\/td>\n<td><span style=\"font-weight: 400;\">632<\/span><\/td>\n<td><span style=\"font-weight: 400;\">154<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not through account 155<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>What should be noted when accounting for unfinished construction costs?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Not used to account for sales costs and business management costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">General production costs must be allocated reasonably (by labor hours, by output, etc.).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the end of the accounting period, unfinished products must be evaluated to determine unfinished costs and calculate the correct cost of goods sold.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the business has many types of products or workshops, it is necessary to track the details of account 154 according to each cost aggregation object.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Giai_phap_toi_uu_va_quan_ly_hieu_qua_chi_phi_do_dang_la_gi\"><\/span><b>What is the optimal solution and effective management of work in progress costs?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Effective management and optimization of work-in-progress costs are the key to help businesses control costs, avoid losses and increase profits. Below is a summary of solutions to optimize work-in-progress costs from each perspective of management - accounting - operation:<\/span><\/p>\n<p><b>Apply appropriate costing methods<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choose the method of cost aggregation and allocation that is appropriate to the nature of production (simple, coefficient, norm, step-by-step, etc.).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apply a reasonable method of determining unfinished products at the end of the period to avoid incorrect recording of cost of goods sold.<\/span><\/li>\n<\/ul>\n<p><b>Tightly control costs of raw materials, labor, and general production costs<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use material consumption standards for each product type.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record costs by stage and by order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare actual costs with planned costs to detect anomalies.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999973203\" aria-describedby=\"caption-attachment-999973203\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999973203\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3.jpg\" alt=\"What-is-bizzi-cost 3\" width=\"1200\" height=\"675\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3.jpg 2240w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-2048x1152.jpg 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-3-18x10.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999973203\" class=\"wp-caption-text\">Need to strictly control unfinished costs such as raw materials, labor, etc.<\/figcaption><\/figure>\n<p><b>Use accounting\/manufacturing software for automated tracking<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Apply software (Fast, MISA, Bravo, ERP...) to: Automatically collect costs into account 154, Automatically calculate cost, Export detailed reports of unfinished products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use comprehensive business expense management software like <\/span><a href=\"https:\/\/bizzi.vn\/bizzi-expense-giai-phap-thay-the\/\"><span style=\"font-weight: 400;\">Bizzi Expense<\/span><\/a><span style=\"font-weight: 400;\"> to automate reporting systems, spending budgets, and real-time cost tracking. Set up budgets by department\/project as well as allocate budgets by group, department, or project to control spending.<\/span><\/li>\n<\/ul>\n<p><b>Organize periodic inventory at the factory<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check quantity - status - progress of completion of unfinished products periodically (end of month, quarter).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare actual with accounting books, detect differences.<\/span><\/li>\n<\/ul>\n<p><b>Build clear production process &amp; standardize stages<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Standardize each step to easily control time and costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Applying technology and automation to optimize productivity and reduce labor costs.<\/span><\/li>\n<\/ul>\n<p><b>Training of accounting and factory management staff<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure employees understand the principles of cost aggregation, standards, and SPDD allocation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Close coordination between accounting department - production workshop - KCS\/QA department.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Nhung_kho_khan_thuong_gap_trong_viec_quan_ly_chi_phi_do_dang\"><\/span><b>Common difficulties in managing work in progress costs\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below are common difficulties in managing work-in-progress costs, especially in construction, manufacturing or capital investment businesses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Difficult to control construction progress and arising volume<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There is no detailed tracking system, lack of software or detailed management tools for each item and project, leading to delays or errors in cost synthesis and analysis.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Many businesses still track manually via Excel, which is prone to errors or omissions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of valid and reasonable documents: Expenses incurred but without complete invoices, acceptance reports, contracts, etc., leading to ineligibility for recording.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loose management and storage of documents creates risks when auditing or settling projects.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Difficult to determine the completion rate of the project<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over-budget costs are not controlled in a timely manner due to the lack of regular reconciliation between the incurred costs and the plan. This leads to the failure to identify over-budgets early, leading to increased investment capital.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Bizzi_Expense_%E2%80%93_Giai_phap_hien_dai_ho_tro_toi_da_doanh_nghiep_trong_quan_ly_va_toi_uu_chi_phi_do_dang\"><\/span><b>Bizzi Expense \u2013 Modern solution to support businesses in managing and optimizing unfinished costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Bizzi Expense is built on a foundation of in-depth analysis of spending behavior and actual business operations. With a friendly interface and simplified processes, Bizzi helps businesses control costs and budgets easier than ever.<\/span><\/p>\n<figure id=\"attachment_999973204\" aria-describedby=\"caption-attachment-999973204\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999973204\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5.png\" alt=\"What-is-bizzi-cost 5\" width=\"1200\" height=\"720\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5.png 1814w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5-300x180.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5-1024x615.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5-768x461.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5-1536x922.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/05\/Bizzi-chi-phi-do-dang-la-gi-5-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999973204\" class=\"wp-caption-text\">Bizzi Expense \u2013 Modern solution to support businesses in managing and optimizing unfinished costs<\/figcaption><\/figure>\n<p><strong>Set up and control effective budgets<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up budgets by department\/project: Allocate specific budgets to each department, team or project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor spending against budget: The system automatically alerts when spending exceeds the allocated budget.<\/span><\/li>\n<\/ul>\n<p><strong>Flexible and automatic spending approval<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automated Approval System: Reduce approval time through automation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Flexible approval flow: Easily set up processes by level, branch type, or department.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track spending request status: Transparent and clear on approval progress (pending, approved, rejected).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submit expense requests in advance: Employees can submit requests before expenses are incurred, ensuring proactive control.<\/span><\/li>\n<\/ul>\n<p><strong>Monitor and track spending in real time<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time expense tracking: Continuously update spending status, help make quick decisions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attach expenses to each project\/task: Identify each expense, support monitoring and analysis of project performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multidimensional expense reporting: Drill down by category, department, project or time.<\/span><\/li>\n<\/ul>\n<p><strong>Compliance and transparency in spending policies<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up internal spending policies: Apply spending limits and regulations for each position\/department.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clear control process: From purchase proposal \u2192 approval \u2192 payment \u2192 reconciliation \u2192 storage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">E-invoice authentication: Check validity, avoid errors or invoice fraud.<\/span><\/li>\n<\/ul>\n<p><strong>Risk monitoring and warning system<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Instant alerts: When there are new requests, budget overruns or unusual transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Controlling the risk of unfinished costs: Early detection of unreasonable expenses helps businesses avoid capital increase or loss.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All cost accounting operations can now be performed quickly, transparently and in strict compliance with internal processes \u2013 reducing risks, increasing efficiency and optimizing operating budgets.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_Luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In short, in business, understanding what work in progress costs are and accurately accounting for work in progress costs is not only an accounting requirement but also a key factor in ensuring the financial health and management quality of the business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be able to control unfinished costs and create a basis for accounting for unfinished construction costs fully and accurately, businesses should apply comprehensive cost management software Bizzi Expense. Bizzi Expense is designed with an intuitive and user-friendly interface, making it easy to record, track and manage costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With full features from recording invoices, classifying expenses to creating and approving online expenses, collecting invoices, Bizzi Expense will help businesses save up to 80% in expenses and control budgets in the simplest, smartest way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contact Bizzi now to learn about the possibility of digitizing and automating revenue and expenditure transactions for your business:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Link to register for a trial of Bizzi products: <\/span><a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Schedule a demo: <\/span><a href=\"https:\/\/bizzi.vn\/dat-lich-demo\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dat-lich-demo\/<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">_____<\/span><\/p>\n<p><b>FAQs \u2013 Frequently asked questions about work in progress and accounting for construction in progress<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is work in progress inventory? (Yes, it is part of inventory).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Why is work in progress an asset on the Balance Sheet? (Because it contains future economic benefits when completed and sold).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Which account is used to record construction in progress costs?<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Account 241 \u2013 Construction in progress is used for tracking.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u2013 Account 2411: Purchase of fixed assets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Account 2412: Basic construction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Account 2413: Major repairs of fixed assets.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">What are the necessary documents to account for unfinished construction costs?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Construction contract.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Minutes of acceptance of work volume.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Invoices and documents for purchasing and outsourcing costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Minutes of acceptance and handover of the project (upon completion).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 Design documents, estimates, and project finalization.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Does the service business have work in progress costs? (Yes, for uncompleted contracts).<\/span><\/li>\n<li>How often should work in progress be evaluated? (Usually at the end of each accounting period: month, quarter, year).<\/li>\n<li>How to choose the appropriate method of evaluating unfinished products? (Based on the characteristics of the technological process, product type, management requirements...).<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Work in progress isn&#039;t just a \u201cpending number\u201d \u2013 it&#039;s an ongoing financial health indicator every\u2026<\/p>","protected":false},"author":56,"featured_media":999973200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-999973199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-so-tay-ke-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999973199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999973199"}],"version-history":[{"count":3,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999973199\/revisions"}],"predecessor-version":[{"id":999973207,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999973199\/revisions\/999973207"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999973200"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999973199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999973199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999973199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}