IASSC ICGB Exam - Topic 9 Question 78 Discussion

Actual exam question for IASSC's ICGB exam

Question #: 78
Topic #: 9

An employee of ACME Corporation noticed that every loan application that gets approved is copied four times and is stored in different locations in the company for no apparent reason. This would be an example of __________________.

AInternal Failure Costs

BAppraisal Costs

CExternal Failure Costs

DPrevention Costs

Show Suggested Answer

Suggested Answer: D

by Alonzo at Dec 09, 2024, 01:47 AM

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Chauncey

5 months ago

Interesting point, but why not just keep one copy?

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Velda

5 months ago

I think it might be more of an Appraisal Cost situation.

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Leanna

5 months ago

Really? Four copies seems excessive, is that really necessary?

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Veronica

6 months ago

Totally agree, that duplication is a waste!

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Avery

6 months ago

This is definitely an example of Internal Failure Costs.

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Sharen

6 months ago

I’m confused about this one. It could be any of them, but I think it’s not External Failure Costs since it’s all happening internally.

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Isadora

6 months ago

I’m leaning towards saying it’s Internal Failure Costs too, but I wonder if it could also be seen as a type of Prevention Costs since they’re trying to keep track of the applications.

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Cyril

6 months ago

I remember a practice question about costs associated with quality control, and this seems like it could fall under Appraisal Costs, but it feels a bit different.

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Viva

7 months ago

I think this might be related to Internal Failure Costs since it's about inefficiencies within the company, but I'm not entirely sure.

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Stephane

7 months ago

This is a tricky one. At first I thought it might be external failure costs, since the extra copies could be to protect against potential issues with the loan applications. But I guess since it's all internal to the company, it's more likely an example of internal failure costs. Gotta be careful with these quality control questions.

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Cory

7 months ago

Okay, I think I've got it. The extra copying and storage is an example of internal failure costs, because it's an unnecessary process that's adding to the company's internal costs without providing any real benefit. Seems like a classic case of waste in the system.

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Alaine

7 months ago

Hmm, I'm a bit confused on this one. Is the extra copying and storage an example of prevention costs, since they're trying to avoid potential issues? Or is it more of an internal failure, since it's an unnecessary process? I'll have to think this through carefully.

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Laurel

7 months ago

This seems like a straightforward quality control question. I'm pretty sure the answer is Internal Failure Costs, since the extra copies of approved loan applications are an unnecessary internal process.

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Audry

12 months ago

Haha, this sounds like a classic ACME move. I bet they're just trying to confuse the quality control guys. Prevention Costs all the way!

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Roy

10 months ago

It's definitely a sneaky move by ACME. Prevention Costs is the right choice.

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Joesph

10 months ago

I think they're just trying to cover up their mistakes. Prevention Costs for sure.

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Donette

10 months ago

Yeah, ACME always has some interesting tactics. I agree, Prevention Costs make the most sense here.

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Lili

12 months ago

I'm going with External Failure Costs. If these loan applications are for customers, the multiple copies could be a way to ensure they're easily accessible in case of a dispute or audit.

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Lynelle

12 months ago

Hmm, I'm not sure. It could also be Appraisal Costs, since they're checking the loan applications, but the multiple copies seem a bit excessive.

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Gracia

11 months ago

C) External Failure Costs

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Sue

11 months ago

B) Appraisal Costs

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Carman

11 months ago

A) Internal Failure Costs

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Lezlie

1 year ago

This is clearly a case of Internal Failure Costs. Storing the same document multiple times for no reason is just inefficient and a waste of resources.

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