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AHIP Exam AHM-520 Topic 5 Question 85 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 85
Topic #: 5
[All AHM-520 Questions]

In order to achieve its goal of improved customer service, the Evergreen Health Plan will add three new customer service representatives to its existing staff, install a new switching station, and install additional phone lines. In this situation, the cost that would be classified as a sunk cost, rather than a differential cost, is the expense associated with:

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Suggested Answer: B

by Willard at Apr 23, 2024, 03:06 AM

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Dominga
5 months ago
I think installing additional phone lines is the sunk cost, as it is a cost that has already been incurred and cannot be changed regardless of the decision to add new staff or a switching station.
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Ezekiel
5 months ago
I can see your perspective but my rationale is based on the fact that maintaining the existing staff is a cost that cannot be recovered.
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Lenna
5 months ago
Interesting point but I still think adding new customer service representatives is the sunk cost.
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Tresa
6 months ago
I see where you're coming from but I think installing a new switching station would be the sunk cost.
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Ezekiel
6 months ago
I disagree, I believe maintaining the existing staff would be the sunk cost in this scenario.
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Lenna
7 months ago
I think the sunk cost would be adding new customer service representatives.
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Lenita
7 months ago
That would also be classified as a differential cost since it's a new addition for improved service.
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Melvin
7 months ago
What about the cost of installing the new switching station?
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Tamekia
7 months ago
So that means the cost of maintaining the existing staff would be a differential cost.
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Jesus
7 months ago
The sunk cost would be the expense associated with adding new customer service representatives.
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