AHIP Exam AHM-520 Topic 4 Question 108 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 108
Topic #: 4

The Amethyst Health Plan uses a budgeting approach that requires each line of business within Amethyst's operation to justify its continued operation. Amethyst begins with the premise that no resources will be allocated for the following period unless each dollar to be spent is justified and is shown to be within departmental plans and corporate goals and objectives. The budgeting approach used by Amethyst is known as:

ABottom-up budgeting

BTop-down budgeting

CZero-based budgeting

DMaster budgeting

Show Suggested Answer

Suggested Answer: C

by Ciara at Mar 06, 2025, 11:11 AM

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Precious

2 days ago

I think the answer is C) Zero-based budgeting.

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Pearlene

3 days ago

Obviously, the correct answer is C) Zero-based budgeting. Amethyst's approach of requiring each line of business to justify its continued operation and allocation of resources aligns perfectly with the principles of zero-based budgeting.

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