Discuss AHIP AHM-520 Exam Topic 5 Question 57

In order to analyze costs for internal management purposes, the Banner health plan uses functional cost analysis. One characteristic of this method of cost analysis is that it

AEnables Banner's top management to analyze costs as they apply to workflow rather than to organizational structures

BAssumes that activities, not products, generate costs

CCannot be used when Banner makes pricing and staffing decisions

DIdentifies units of activity, calculates the costs of performing each unit of activity, and then assigns the cost of each unit of activity to Banner's products or lines of business

Suggested Answer: A

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14 comments · newest first

Johanna 12 months ago

Totally agree with D, it’s all about those activity costs!

Justine 1 year ago

Wait, can you really not use C for pricing decisions? That seems off.

Isaac 1 year ago

D sounds right, it breaks down costs by activity.

Gerardo 1 year ago

I think B is more accurate, activities drive costs.

Maryann 1 year ago

A is definitely true, it focuses on workflow!

Selene 1 year ago

I vaguely remember that functional cost analysis helps in decision-making, so I don’t think option C is correct. It seems like it should be useful for pricing and staffing decisions.

Bronwyn 1 year ago

I’m a bit confused about this one. I thought functional cost analysis was more about workflow, which makes me lean towards option A, but I can't recall the details clearly.

Kandis 1 year ago

I feel like we practiced a similar question where we talked about how costs are assigned to activities. I think option D might be the correct answer since it mentions calculating costs for each unit of activity.

Johna 1 year ago

I remember we discussed functional cost analysis in class, and I think it focuses on activities rather than just products. So, option B seems right, but I'm not entirely sure.

Delbert 1 year ago

Okay, let's see. The question is asking about the customer benefits, so I'll need to focus on how this product can help businesses and end-users, not just the technical specs.

Casey 1 year ago

I think the use case diagram would be the best tool for this. It helps capture the key requirements and interactions between the system and its users.

Ciara 1 year ago

Ah, I remember learning about this in my IT class. Public folders are a feature of Outlook, not the local file system. The correct answer is option A, "Documents Library."

Veta 1 year ago

I feel like advertising might be considered variable depending on the campaigns, but it's tricky. I'd go with food and beverages for sure.

Allene 1 year ago

I remember we discussed that decision trees can be good for capturing complex patterns. I think they might have higher recall for detecting fraud.

AHIP AHM-520 Exam - Topic 5 Question 57 Discussion