IASSC Exam ICGB Topic 9 Question 78 Discussion

Actual exam question for IASSC's ICGB exam

Question #: 78
Topic #: 9

[All ICGB Questions]

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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Audry

1 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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Donette

1 days ago

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

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Lili

1 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

2 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

19 days ago

C) External Failure Costs

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Sue

24 days ago

B) Appraisal Costs

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Carman

1 months ago

A) Internal Failure Costs

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Lezlie

2 months 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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