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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Tamera

4 months ago

C) Zero-based budgeting, no doubt. Though I bet the folks at Amethyst are wishing they could just use D) Master budgeting and call it a day.

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Effie

4 months ago

A) Bottom-up budgeting? More like 'bottom-less' budgeting with the way Amethyst is scrutinizing every penny. This is definitely zero-based all the way.

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Leeann

3 months ago

D) Master budgeting could work too, but zero-based is more thorough.

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Tyra

4 months ago

C) Zero-based budgeting is definitely the way to go with Amethyst.

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Daniela

4 months ago

A) Bottom-up budgeting? Sounds intense.

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Kenneth

4 months ago

C) Zero-based budgeting

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Leonor

4 months 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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Christoper

3 months ago

B) Top-down budgeting might work well for companies with a clear hierarchy in decision-making.

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Chara

4 months ago

I prefer D) Master budgeting because it provides an overall financial roadmap for the organization.

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Corinne

4 months ago

I think A) Bottom-up budgeting could also be effective in certain situations.

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Novella

4 months ago

I agree, C) Zero-based budgeting is definitely a thorough approach to budgeting.

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Adell

4 months 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

5 months 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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