Assume you are the management accountant for the Foleo Group. Tracey Chen, the CFO, has called you into a meeting, to discuss the performance of the Warehouse Manager of the Foleo Fones business unit in managing his inventory stocks. After his last meeting with the Production Manager, Allan Raymond, the Business Unit GM, has supplied Tracey with below data relating to the inventory management practices for the current year. Tracey asks you analyse this data and before her Board meeting next week.

Inventory Management Activities Current Year's Cost Handling of inventory Transportation of inventory Unloading delivered inventory from freight truck Inspecting delivered orders Spoilage and obsolescence of inventory Theft of inventory Selection of Supplier Warehouse rental (variable)