New Year Sale ! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AHIP Exam AHM-520 Topic 6 Question 94 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 94
Topic #: 6
[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:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Enola at Aug 07, 2024, 01:54 AM

Limited Time Offer

25%

Off

Get Premium AHM-520 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Blythe
3 months ago
I agree with Emmett, the sunk cost would be the expense associated with installing a new switching station because it is a one-time cost that cannot be recovered.
upvoted 0 times
...
Emmett
4 months ago
I think the sunk cost would be the expense associated with installing a new switching station.
upvoted 0 times
...
Tawna
4 months ago
Haha, I bet the exam writers are just trying to confuse us. Sunk costs are like the ghosts of business decisions - they haunt us forever!
upvoted 0 times
Esteban
3 months ago
C) Installing a new switching station
upvoted 0 times
...
Iola
3 months ago
A) Adding new customer service representatives
upvoted 0 times
...
...
Marsha
4 months ago
I disagree, I believe the sunk cost would be the expense associated with maintaining the existing staff.
upvoted 0 times
...
Arlette
4 months ago
Hmm, I'm not sure about this one. The cost of adding new customer service representatives seems like it could be a sunk cost too. The question is really tricky!
upvoted 0 times
Lacresha
3 months ago
C) Installing a new switching station
upvoted 0 times
...
Miesha
3 months ago
No, adding new customer service representatives would be a sunk cost in this situation.
upvoted 0 times
...
Delisa
3 months ago
A) Adding new customer service representatives
upvoted 0 times
...
...
Nina
4 months ago
D seems like the correct answer here. The cost of installing additional phone lines is a differential cost, as it will vary depending on the decision made.
upvoted 0 times
Colton
3 months ago
D) Installing additional phone lines
upvoted 0 times
...
Vincent
4 months ago
C) Installing a new switching station
upvoted 0 times
...
Pamella
4 months ago
B) Maintaining the existing staff
upvoted 0 times
...
Maile
4 months ago
A) Adding new customer service representatives
upvoted 0 times
...
...
Julio
4 months ago
I think the answer is C. The expense of installing a new switching station is a sunk cost, as it has already been incurred and cannot be changed regardless of the decision made.
upvoted 0 times
Evangelina
4 months ago
I think it's important to consider both sunk costs and differential costs when making decisions.
upvoted 0 times
...
Lai
4 months ago
I agree, the cost of installing a new switching station is a sunk cost.
upvoted 0 times
...
...
Yuette
5 months ago
I think the sunk cost would be the expense associated with adding new customer service representatives.
upvoted 0 times
...

Save Cancel