AHIP AHM-520 Exam - Topic 4 Question 106 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 106
Topic #: 4

Costs that can be defined by behavior are most commonly classified as fixed costs, variable costs and semi-variable costs. Examples of fixed costs include:

ARent, insurance expense, and depreciation on computer equipment

BRent, claims processing costs, and selling expenses

CClaims processing costs, telephone expense, and depreciation on computer equipment

DPremium processing, rent, and selling expenses

Show Suggested Answer

Suggested Answer: A

by Mitzie at Jan 28, 2025, 01:14 PM

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Elin

5 months ago

Rent and insurance are classic examples of fixed costs.

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Deonna

5 months ago

Wait, selling expenses are fixed? That seems off!

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Kaycee

6 months ago

Claims processing costs aren't fixed, though.

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Thaddeus

6 months ago

Totally agree, A is the right choice!

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Madonna

6 months ago

Fixed costs are definitely things like rent and depreciation.

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Lauran

6 months ago

I feel like option A makes the most sense, but I’m not completely confident about the examples. I hope I remember the definitions correctly!

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Vesta

7 months ago

I’m a bit unsure about selling expenses being fixed. I thought they could change based on sales volume. Maybe I should reconsider option D.

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Cecily

7 months ago

I remember practicing a question similar to this, and I think claims processing costs can vary, so they might not fit as fixed costs.

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Sue

7 months ago

I think fixed costs are expenses that don't change with production levels, like rent and depreciation. So, I’m leaning towards option A.

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Keva

7 months ago

The wording of the question is a bit tricky, but I believe option A best fits the description of fixed costs. I'll select that.

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Eladia

7 months ago

I'm not totally confident, but I think option A looks the most accurate based on the examples given. I'll go with that.

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Kiley

7 months ago

Okay, I've got this. The key is to look for costs that don't change with production volume, like rent and insurance. I'll go with option A.

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Ahmad

7 months ago

Hmm, I'm a bit unsure about the difference between fixed and variable costs. Let me think this through carefully.

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Francisca

7 months ago

This question seems straightforward. I'll focus on identifying the fixed costs listed in the answer choices.

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Jacquline

1 year ago

I believe C is incorrect because telephone expense is a variable cost, not a fixed cost.

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Jolanda

1 year ago

Haha, D is a funny one. Premium processing? What is this, a VIP lounge?

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Lanie

1 year ago

D) Premium processing, rent, and selling expenses

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Joni

1 year ago

C) Claims processing costs, telephone expense, and depreciation on computer equipment

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Justine

1 year ago

B) Rent, claims processing costs, and selling expenses

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Leslee

1 year ago

A) Rent, insurance expense, and depreciation on computer equipment

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Stacey

1 year ago

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Mabel

1 year ago

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Karrie

1 year ago

I'm not sure, but I think it could also be C.

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Tamra

1 year ago

I'm going with B. Claims processing and selling expenses sound like variable costs to me.

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Myra

1 year ago

I agree with you, A seems to be the most accurate choice.

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Myra

1 year ago

I think A is the correct answer. Rent and insurance expense are definitely fixed costs.

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Hubert

1 year ago

I agree with Rosendo, fixed costs are expenses that do not change regardless of production levels.

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Rosendo

1 year ago

I think the answer is A.

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Caren

1 year ago

Option A seems the most accurate. Rent, insurance, and depreciation are classic examples of fixed costs.

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Erasmo

1 year ago

Fixed costs are important to consider when analyzing the financial health of a business.

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Robt

1 year ago

Yes, those are all costs that remain constant regardless of the level of activity.

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Cathrine

1 year ago

I agree, rent, insurance expense, and depreciation on computer equipment are definitely fixed costs.

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