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GAQM CLSSYB-001 Exam - Topic 7 Question 3 Discussion

Al bought a handheld GPS from his local electronics store. When he entered an address it would not function. For the manufacturer of the GPS this would be categorized as what type of cost?
C) External Failure Cost
A) Internal Failure Cost
B) Prevention Cost
D) Appraisal Cost

GAQM CLSSYB-001 Exam - Topic 7 Question 3 Discussion

Actual exam question for GAQM's CLSSYB-001 exam
Question #: 3
Topic #: 7
[All CLSSYB-001 Questions]

Al bought a handheld GPS from his local electronics store. When he entered an address it would not function. For the manufacturer of the GPS this would be categorized as what type of cost?

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Suggested Answer: C

by Shawna at May 05, 2022, 05:21 AM

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Dante
10 months ago
Prevention Cost? Nah, that doesn't fit this situation at all.
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Minna
10 months ago
Agreed, Internal Failure makes the most sense here.
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Tran
10 months ago
Wait, how can it be an Internal Failure? That seems off.
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Dana
11 months ago
I think it's more of an External Failure Cost.
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Desire
11 months ago
That's definitely an Internal Failure Cost.
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Emmanuel
11 months ago
I practiced a similar question, and I think it was about how the company has to deal with the consequences of the product failing in the market. So, maybe it's External Failure Cost?
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Carmen
11 months ago
I feel like this could also relate to Appraisal Costs, but that seems more about testing products before they go out.
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Beckie
11 months ago
I think this might be an External Failure Cost since the GPS didn't work for the customer after purchase.
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Estrella
11 months ago
I'm not entirely sure, but I remember something about Internal Failure Costs being related to issues before the product reaches the customer.
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Rosendo
11 months ago
I've got this! The directors' refusal to correct the material error means the auditors can't issue a clean opinion. A qualified opinion wouldn't be strong enough, so the answer has to be C - Adverse opinion. Easy peasy!
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Pamella
11 months ago
I thought the Store Locator was more like a Secondary option since it's not a main function of the website.
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