AHIP Exam AHM-520 Topic 6 Question 83 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 83
Topic #: 6

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:

AAdding new customer service representatives

BMaintaining the existing staff

CInstalling a new switching station

DInstalling additional phone lines

Show Suggested Answer

Suggested Answer: B

by Earleen at Mar 20, 2024, 04:23 PM

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Selma

5 months ago

I see your point, however, I still think the expense of maintaining the existing staff is the sunk cost in this scenario.

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Claudio

5 months ago

But wouldn't the cost of adding new customer service representatives also be a sunk cost since it cannot be recovered once incurred?

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Wynell

5 months ago

I agree with Tanesha, the cost of installing a new switching station would be the sunk cost in this situation.

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Tanesha

5 months ago

I think the sunk cost would be the expense associated with installing a new switching station.

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Selma

5 months ago

I disagree, I believe the sunk cost would be the expense associated with maintaining the existing staff.

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Claudio

5 months ago

I think the sunk cost would be the expense associated with adding new customer service representatives.

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Mollie

5 months ago

Actually, the expense associated with installing a new switching station might be a sunk cost since it cannot be recovered.

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Daron

5 months ago

I think the cost of installing additional phone lines would be classified as a differential cost, not a sunk cost.

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Matthew

6 months ago

I disagree, I believe the cost of adding new customer service representatives would be considered a sunk cost.

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Karl

7 months ago

I think the cost associated with maintaining the existing staff would be classified as a sunk cost.

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