What is the term used for items classified as assets that are unfinished?

The term used for items classified as assets that are unfinished is "Work in Progress." This designation refers to products that are in the process of being manufactured and have not yet been completed. Work in Progress encompasses all costs associated with production up to that point, such as materials, labor, and overhead.

In the context of accounting and inventory management, this classification is crucial as it reflects the investment in partially completed goods. It helps businesses assess their inventory and overall operational efficiency more accurately. For example, if a company has a significant amount of Work in Progress, it might indicate that production is ongoing, but it could also signal bottlenecks or delays that need addressing.

Other classifications may pertain to different stages of production or types of inventory. Finished Goods represent completed items ready for sale, Raw Materials are the basic inputs used in production, and Supplies are generally items used in the production process that do not become part of the finished product. Therefore, "Work in Progress" specifically captures the status of incomplete assets, making it the correct term for the question asked.