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仕掛品
[shikakehin] - work-in-progress (WIP) inventory

仕掛品 (shikakehin) refers to work-in-progress (WIP) inventory in Japan. This term is used in manufacturing and production contexts to describe items that are in the process of being produced but are not yet completed. Shikakehin includes raw materials that have been partially processed and components that are in various stages of assembly. These items are not ready for sale or use because they have not yet undergone all the necessary production steps. Managing shikakehin is crucial for efficient production planning and inventory control, as it helps companies monitor the progress of their manufacturing processes, allocate resources effectively, and minimize production delays. Proper accounting of shikakehin also plays a significant role in financial reporting and cost management.


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See Also

減価償却費   [genkashoukyakuhi] - depreciation expense

減価償却費 (genkashoukyakuhi) means depreciation expense in Japanese.

Depreciation expense is the accounting process of allocating the cost of tangible assets over their useful lives. This method recognizes that assets like machinery, vehicles, and buildings lose value over time due to wear and tear, usage, or obsolescence.

In Japan, depreciation expense is a significant component of financial statements, helping businesses reflect the declining value of their fixed assets accurately. The amount and method of depreciation can affect a company's taxable income, making it crucial for tax reporting and financial planning.

The two common methods of depreciation in Japan are the straight-line method, where the asset's cost is spread evenly over its useful life, and the declining balance method, where higher depreciation expenses are recorded in the earlier years of the asset's life, decreasing over time.

Understanding and correctly applying depreciation expense is essential for accurate financial reporting and tax compliance in Japan.

Read more
経費   [keihi] - expenses or business expenses

In Japanese, the term 経費 (keihi) refers to "expenses" or "business expenses." These are the costs incurred in the process of running a business. Keihi can include a wide range of expenditures such as rent for office space, utilities like electricity, water, and internet, employee salaries and wages, office supplies, travel expenses, marketing and advertising costs, and depreciation of assets. Properly tracking and managing keihi is essential for maintaining accurate financial records, budgeting, and ensuring compliance with tax regulations. In Japan, businesses must be meticulous in documenting and categorizing their expenses to maximize tax deductions and maintain transparency with the tax authorities.

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償却 資産   [shoukyaku shisan] - depreciable assets

償却資産 (shoukyaku shisan) is a Japanese term that translates to "depreciable assets" or "amortizable assets" in English. It refers to tangible fixed assets that are subject to depreciation over time due to wear and tear, obsolescence, or usage.

Examples of 償却資産 include machinery, equipment, buildings, and vehicles. These assets are capitalized on a company's balance sheet and their cost is gradually expensed through depreciation over their useful life. This accounting practice helps in matching the cost of the asset with the revenue it generates, providing a more accurate picture of a company's financial performance.

Read more

Frequently Asked Questions

仕掛品 (shikakehin) refers to work-in-progress (WIP) inventory in Japan. This term is used in manufacturing and production contexts to describe items that are in the process of being produced but are not yet completed. Shikakehin includes raw materials that have been partially processed and components that are in various stages of assembly. These items are not ready for sale or use because they have not yet undergone all the necessary production steps. Managing shikakehin is crucial for efficient production planning and inventory control, as it helps companies monitor the progress of their manufacturing processes, allocate resources effectively, and minimize production delays. Proper accounting of shikakehin also plays a significant role in financial reporting and cost management.


Work-in-progress (wip) inventory is 仕掛品 (shikakehin) in Japanese.




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