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Stock levels

Unit 2: Accounting for MaterialsTopic 4 of 7
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

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What the syllabus expects

  • Reorder, maximum, minimum and average levels
  • Danger level
  • Safety stock

Stock levels

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 stock levels.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Reorder, maximum, minimum and average levels
  • Danger level
  • Safety stock

Detailed Microsyllabus

  1. Stock-level calculations

    1. Reorder level based on demand and lead time.
    2. Minimum, maximum and average levels.
    3. Danger level and its purpose.

  2. Safety stock

    1. Demand and lead-time uncertainty.
    2. Protection against stockouts.
    3. Calculate prescribed levels and explain the 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.