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IASSC ICGB Exam - Topic 4 Question 87 Discussion

The Purchase Orders for Glenn Manufacturing Company were being copied by an employee and sent to four different departments yet only one department took an action based on the information in the PO. This is an example of ____________.
C) Internal Failure Costs
A) External Failure Costs
B) Appraisal Costs
D) Prevention Costs

IASSC ICGB Exam - Topic 4 Question 87 Discussion

Actual exam question for IASSC's ICGB exam
Question #: 87
Topic #: 4
[All ICGB Questions]

The Purchase Orders for Glenn Manufacturing Company were being copied by an employee and sent to four different departments yet only one department took an action based on the information in the PO. This is an example of ____________.

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Suggested Answer: C

by Bok at Jul 08, 2025, 08:07 PM

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Vivan
9 months ago
I’m surprised only one department acted on it, that’s a bit odd!
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Xenia
9 months ago
Seems like a classic case of poor communication within the company.
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Kathrine
9 months ago
Totally agree, wasting resources like that is a big issue!
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Joseph
9 months ago
Wait, how is this not an External Failure Cost?
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Talia
10 months ago
This is definitely an example of Internal Failure Costs.
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Daisy
10 months ago
I’m torn between Prevention Costs and External Failure Costs. I wish I had reviewed those concepts more before the exam!
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Genevieve
10 months ago
I remember discussing Internal Failure Costs in class, and this situation seems to fit that definition since there's a lack of action from most departments.
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Willodean
10 months ago
This reminds me of a practice question we did on costs. I feel like it could be Appraisal Costs, but that doesn't seem quite right.
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Harley
11 months ago
I think this might be related to External Failure Costs since only one department acted on the PO, but I'm not entirely sure.
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Beth
11 months ago
Hmm, I'm a little unsure about this one. The fact that the information wasn't used properly makes me think it could be either Internal Failure Costs or External Failure Costs. I'll have to weigh the options carefully before selecting an answer.
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Reita
11 months ago
Ah, I see what they're getting at. Since the purchase orders were copied but not all departments acted on them, that sounds like an internal failure within the company. I'm confident C is the right answer here.
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Rocco
11 months ago
Okay, let me see here. The question is talking about an employee copying purchase orders and only one department taking action. I'm thinking this might be an example of Appraisal Costs, so I'll go with B.
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Amber
11 months ago
Hmm, this seems like a tricky one. I'll have to think it through carefully. I'm not totally sure, but I'm leaning towards C - Internal Failure Costs.
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Mable
1 year ago
This question is making my head spin more than a Tasmanian devil on a caffeine high. Where's the multiple-choice option for 'all of the above'?
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Aleisha
12 months ago
B) Appraisal Costs
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Christiane
1 year ago
A) External Failure Costs
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Kiley
1 year ago
I'm going with Internal Failure Costs. It's like the old saying, 'Too many cooks in the kitchen.' Clearly, there's a breakdown in communication and coordination within the company.
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Felicitas
12 months ago
B) Appraisal Costs
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Raylene
12 months ago
A) External Failure Costs
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Aleisha
1 year ago
I see your point, Danica, but I still think C) Internal Failure Costs is the best fit in this scenario.
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Danica
1 year ago
I believe it could also be A) External Failure Costs, since the failure occurred outside the company.
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Serina
1 year ago
This sounds like a classic case of External Failure Costs to me. The company is failing to meet the needs of its customers or stakeholders.
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Salena
12 months ago
The company should definitely work on preventing these kinds of issues in the future.
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Jame
1 year ago
Yes, I agree. It seems like a clear example of External Failure Costs.
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Jamie
1 year ago
Hmm, I'm not sure. Could it be Appraisal Costs? The departments were at least checking the information, even if they didn't all act on it.
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Fanny
1 year ago
I think this is an example of Internal Failure Costs. The information was not properly used, leading to a failure within the organization.
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Kyoko
1 year ago
Yes, the lack of action from three departments resulted in wasted resources.
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Dalene
1 year ago
I agree, it seems like a case of Internal Failure Costs.
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Laura
1 year ago
I agree with Cathrine, because the information in the PO was not utilized effectively by three departments.
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Cathrine
1 year ago
I think the answer is C) Internal Failure Costs.
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