AHIP Exam AHM-520 Topic 5 Question 57 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 57
Topic #: 5

In order to analyze costs for internal management purposes, the Banner health plan uses functional cost analysis. One characteristic of this method of cost analysis is that it

AEnables Banner's top management to analyze costs as they apply to workflow rather than to organizational structures

BAssumes that activities, not products, generate costs

CCannot be used when Banner makes pricing and staffing decisions

DIdentifies units of activity, calculates the costs of performing each unit of activity, and then assigns the cost of each unit of activity to Banner's products or lines of business

Show Suggested Answer

Suggested Answer: A

by Freeman at Aug 19, 2022, 12:17 AM

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