Economic order quantity

Economic order quantity

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 2: Accounting for Materials

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of economic order quantity.
• Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

• Concept and techniques
• Formula, graphical and trial-and-error approaches
• Discounts under certainty

Detailed Microsyllabus

1. EOQ foundations

   1. Ordering and carrying-cost trade-offs.
   2. Demand and replenishment assumptions.
   3. Identify relevant costs and consistent units.

2. EOQ calculation

   1. Formula, graphical and trial-and-error approaches.
   2. Evaluate total cost at alternative order quantities.
   3. Compare quantity-discount alternatives under stated certainty assumptions.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.