AHIP Exam AHM-520 Topic 2 Question 86 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 86
Topic #: 2

[All AHM-520 Questions]

If the operational budget prepared by the Satilla health plan is typical of most operational budgets, then

AIts purpose is to track Satilla's operations and short-term profitability

BThe key information source for this operational budget is Satilla's external environment

CThe time frame for this operational budget is three to five years

DIts focus is on the threats that Satilla faces from its external environment

Show Suggested Answer

Suggested Answer: C

by Daryl at May 01, 2024, 06:23 PM

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10 months ago

Makes sense. Proposal A has a PI less than 1, so NPV is negative. Definitely not the right choice.

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10 months ago

Because Proposal B has a PI of 1.05, which means the NPV is greater than zero. Option D.

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10 months ago

Why do you think Proposal B is better?

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10 months ago

I felt it was straightforward. Proposal B is the obvious choice.

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11 months ago

Yeah, it seems tricky at first. Those PI values though.

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11 months ago

Did you see the question about the Jade Health Plan using PI to rank proposals?

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