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AHIP AHM-520 Exam - Topic 5 Question 57 Discussion

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
A) Enables Banner's top management to analyze costs as they apply to workflow rather than to organizational structures
B) Assumes that activities, not products, generate costs
C) Cannot be used when Banner makes pricing and staffing decisions
D) Identifies 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

AHIP AHM-520 Exam - Topic 5 Question 57 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 57
Topic #: 5
[All AHM-520 Questions]

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

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Suggested Answer: A

by Freeman at Aug 19, 2022, 12:17 AM

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Johanna
10 months ago
Totally agree with D, it’s all about those activity costs!
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Justine
11 months ago
Wait, can you really not use C for pricing decisions? That seems off.
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Isaac
11 months ago
D sounds right, it breaks down costs by activity.
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Gerardo
11 months ago
I think B is more accurate, activities drive costs.
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Maryann
11 months ago
A is definitely true, it focuses on workflow!
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Selene
11 months 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.
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Bronwyn
11 months 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.
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Kandis
11 months 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.
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Johna
12 months 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.
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Delbert
12 months 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.
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Casey
12 months 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.
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Ciara
12 months 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."
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Veta
12 months 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.
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Allene
12 months 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.
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