Deal of The Day! 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 AHM-520 Exam - Topic 4 Question 106 Discussion

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:
A) Rent, insurance expense, and depreciation on computer equipment
B) Rent, claims processing costs, and selling expenses
C) Claims processing costs, telephone expense, and depreciation on computer equipment
D) Premium processing, rent, and selling expenses

AHIP AHM-520 Exam - Topic 4 Question 106 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 106
Topic #: 4
[All AHM-520 Questions]

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:

Show Suggested Answer Hide Answer
Suggested Answer: A

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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Elin
8 months ago
Rent and insurance are classic examples of fixed costs.
upvoted 0 times
...
Deonna
8 months ago
Wait, selling expenses are fixed? That seems off!
upvoted 0 times
...
Kaycee
9 months ago
Claims processing costs aren't fixed, though.
upvoted 0 times
...
Thaddeus
9 months ago
Totally agree, A is the right choice!
upvoted 0 times
...
Madonna
9 months ago
Fixed costs are definitely things like rent and depreciation.
upvoted 0 times
...
Lauran
9 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!
upvoted 0 times
...
Vesta
10 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.
upvoted 0 times
...
Cecily
10 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.
upvoted 0 times
...
Sue
10 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.
upvoted 0 times
...
Keva
10 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.
upvoted 0 times
...
Eladia
10 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.
upvoted 0 times
...
Kiley
10 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.
upvoted 0 times
...
Ahmad
10 months ago
Hmm, I'm a bit unsure about the difference between fixed and variable costs. Let me think this through carefully.
upvoted 0 times
...
Francisca
10 months ago
This question seems straightforward. I'll focus on identifying the fixed costs listed in the answer choices.
upvoted 0 times
...
Jacquline
1 year ago
I believe C is incorrect because telephone expense is a variable cost, not a fixed cost.
upvoted 0 times
...
Jolanda
1 year ago
Haha, D is a funny one. Premium processing? What is this, a VIP lounge?
upvoted 0 times
Lanie
1 year ago
D) Premium processing, rent, and selling expenses
upvoted 0 times
...
Joni
1 year ago
C) Claims processing costs, telephone expense, and depreciation on computer equipment
upvoted 0 times
...
Justine
1 year ago
B) Rent, claims processing costs, and selling expenses
upvoted 0 times
...
Leslee
1 year ago
A) Rent, insurance expense, and depreciation on computer equipment
upvoted 0 times
...
Stacey
1 year ago
A
upvoted 0 times
...
Mabel
1 year ago
D
upvoted 0 times
...
...
Karrie
2 years ago
I'm not sure, but I think it could also be C.
upvoted 0 times
...
Tamra
2 years ago
I'm going with B. Claims processing and selling expenses sound like variable costs to me.
upvoted 0 times
Myra
1 year ago
I agree with you, A seems to be the most accurate choice.
upvoted 0 times
...
Myra
1 year ago
I think A is the correct answer. Rent and insurance expense are definitely fixed costs.
upvoted 0 times
...
...
Hubert
2 years ago
I agree with Rosendo, fixed costs are expenses that do not change regardless of production levels.
upvoted 0 times
...
Rosendo
2 years ago
I think the answer is A.
upvoted 0 times
...
Caren
2 years ago
Option A seems the most accurate. Rent, insurance, and depreciation are classic examples of fixed costs.
upvoted 0 times
Erasmo
1 year ago
Fixed costs are important to consider when analyzing the financial health of a business.
upvoted 0 times
...
Robt
1 year ago
Yes, those are all costs that remain constant regardless of the level of activity.
upvoted 0 times
...
Cathrine
2 years ago
I agree, rent, insurance expense, and depreciation on computer equipment are definitely fixed costs.
upvoted 0 times
...
...

Save Cancel