Final answer:
It is true that Construction in Progress (CIP) represents the contractor's work-in-process inventory, which includes all costs incurred for incomplete construction projects.
Step-by-step explanation:
The statement that Construction in Progress (CIP) is the contractor's work-in-process inventory is true. CIP refers to the cost of construction work, which is not yet completed but is still underway. It represents the accumulation of labor, material, and overhead costs for construction projects that are not completed at the end of an accounting period.
As part of the monthly survey of construction and the annual survey of expenditures on physical capital equipment carried out by the Census Bureau, CIP figures may be analyzed to understand the investment and work-in-progress status of various construction projects.