AHIP Exam AHM-520 Topic 6 Question 102 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 102
Topic #: 6

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 Laura at Oct 19, 2024, 03:40 AM

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Leonor

6 days ago

I'm going with C) Zero-based budgeting. Justifying every dollar spent? That's the definition of zero-based budgeting, no matter how much it makes my head hurt.

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Adell

8 days ago

Hmm, this sounds like a trick question. It could be B) Top-down budgeting, since Amethyst is setting the corporate goals and objectives that the departments need to align with.

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Yuriko

9 days ago

I think the answer is C) Zero-based budgeting. Amethyst is requiring each line of business to justify its continued operation, which is the essence of zero-based budgeting.

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Andree

16 days ago

I agree with Deja. Zero-based budgeting requires justification for every dollar spent, which aligns with Amethyst's approach.

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Deja

19 days ago

I think the budgeting approach used by Amethyst is C) Zero-based budgeting.

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