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AHIP Exam AHM-520 Topic 4 Question 108 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 108
Topic #: 4
[All AHM-520 Questions]

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:

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Suggested Answer: C

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

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Precious
12 days ago
I see your point, Angelica, but I still think C) Zero-based budgeting fits the description better.
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Angelica
14 days ago
I'm not sure, but I think D) Master budgeting could also be a possibility.
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Elly
17 days ago
Haha, this question is a piece of cake! The answer has to be C) Zero-based budgeting. It's like Amethyst is saying, 'Show me the money, or you ain't gettin' any!'
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Juliana
18 days ago
I agree with Precious, Zero-based budgeting makes sense in this scenario.
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Valentin
20 days ago
I'm not too sure about this one, but I think B) Top-down budgeting might be the correct answer. Amethyst seems to be taking a more centralized approach to budgeting, which is typical of top-down budgeting.
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Deangelo
6 days ago
I think C) Zero-based budgeting might be the correct answer. It seems like Amethyst wants each dollar to be justified and aligned with departmental plans and goals.
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Precious
23 days ago
I think the answer is C) Zero-based budgeting.
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Pearlene
24 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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Willard
8 days ago
C) Zero-based budgeting
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Leandro
9 days ago
B) Top-down budgeting
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Bulah
17 days ago
A) Bottom-up budgeting
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