AHIP Exam AHM-520 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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Jacquline

2 months ago

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

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Jolanda

2 months ago

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

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Lanie

20 days ago

D) Premium processing, rent, and selling expenses

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Joni

25 days ago

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

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Justine

1 months ago

B) Rent, claims processing costs, and selling expenses

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Leslee

1 months ago

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

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Stacey

2 months ago

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Mabel

2 months ago

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Karrie

3 months ago

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

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Tamra

3 months ago

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

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Myra

2 months ago

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

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Myra

2 months ago

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

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Hubert

3 months ago

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

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Rosendo

3 months ago

I think the answer is A.

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Caren

3 months ago

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

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Erasmo

2 months ago

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

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Robt

2 months ago

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

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Cathrine

2 months ago

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

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