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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:

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Suggested Answer: B

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

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Blythe
7 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.
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Emmett
7 months ago
I think the sunk cost would be the expense associated with installing a new switching station.
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Tawna
7 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!
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Esteban
6 months ago
C) Installing a new switching station
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Iola
6 months ago
A) Adding new customer service representatives
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Marsha
7 months ago
I disagree, I believe the sunk cost would be the expense associated with maintaining the existing staff.
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Arlette
7 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!
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Lacresha
6 months ago
C) Installing a new switching station
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Miesha
6 months ago
No, adding new customer service representatives would be a sunk cost in this situation.
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Delisa
7 months ago
A) Adding new customer service representatives
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Nina
7 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.
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Colton
7 months ago
D) Installing additional phone lines
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Vincent
7 months ago
C) Installing a new switching station
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Pamella
7 months ago
B) Maintaining the existing staff
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Maile
7 months ago
A) Adding new customer service representatives
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Julio
7 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.
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Evangelina
7 months ago
I think it's important to consider both sunk costs and differential costs when making decisions.
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Lai
7 months ago
I agree, the cost of installing a new switching station is a sunk cost.
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Yuette
8 months ago
I think the sunk cost would be the expense associated with adding new customer service representatives.
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