An application of a Chartered Institute of Management Accounting strategy on stock control: a case of the South African municipality

The aim of the study is to demonstrate how best a municipal stock control can be applied in conformity with strategic requirements of the Chartered Institute of Management Accounting (CIMA). A quantitative research method was applied. The questionnaire was formulated based on information obtained from the literature, and was distributed to only one KwaZulu-Natal (KZN) local government department. The sample consisted of 82 respondents, selected using a census sampling method. The results indicate that the stores department lack CIMA stock control strategies, leading to poor stock control policy formulation and application. Staff experience and the effect of municipal stock control policy have shown a positive and significant relationship at .000* level. Proper documentation of strategic stock control and staff experience has also shown a positive significant relationship at .004* level. Moreover, the municipal strategic stock control framework has been proposed at the end of this paper and is subject to further experiments by the scholars.

Keywords: stock control, stock control policy, stock control strategies.
JEL Classification: H54, M40