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AHIP Exam AHM-520 Topic 6 Question 102 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 102
Topic #: 6
[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

Contribute your Thoughts:

Tamera
1 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
1 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
12 days ago
D) Master budgeting could work too, but zero-based is more thorough.
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Tyra
24 days ago
C) Zero-based budgeting is definitely the way to go with Amethyst.
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Daniela
26 days ago
A) Bottom-up budgeting? Sounds intense.
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Kenneth
28 days ago
C) Zero-based budgeting
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Leonor
1 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
5 days ago
B) Top-down budgeting might work well for companies with a clear hierarchy in decision-making.
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Chara
19 days ago
I prefer D) Master budgeting because it provides an overall financial roadmap for the organization.
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Corinne
21 days ago
I think A) Bottom-up budgeting could also be effective in certain situations.
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Novella
30 days ago
I agree, C) Zero-based budgeting is definitely a thorough approach to budgeting.
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Adell
2 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
2 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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Mitsue
27 days ago
Zero-based budgeting makes sense in this scenario, where each dollar spent needs to be justified.
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Jani
30 days ago
I think you're right, it does seem to align with the concept of zero-based budgeting.
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Rose
1 months ago
I agree, the approach used by Amethyst sounds like zero-based budgeting.
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Andree
2 months 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
2 months ago
I think the budgeting approach used by Amethyst is C) Zero-based budgeting.
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