AHIP Exam AHM-520 Topic 4 Question 108 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 108
Topic #: 4

The Amethyst Health Plan uses a budgeting approach that requires each line of business within Amethyst's operation to justify its continued operation. Amethyst begins with the premise that no resources will be allocated for the following period unless each dollar to be spent is justified and is shown to be within departmental plans and corporate goals and objectives. The budgeting approach used by Amethyst is known as:

ABottom-up budgeting

BTop-down budgeting

CZero-based budgeting

DMaster budgeting

Show Suggested Answer

Suggested Answer: C

by Ciara at Mar 06, 2025, 11:11 AM

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Precious

2 months ago

I see your point, Angelica, but I still think C) Zero-based budgeting fits the description better.

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Angelica

2 months ago

I'm not sure, but I think D) Master budgeting could also be a possibility.

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Elly

2 months ago

Haha, this question is a piece of cake! The answer has to be C) Zero-based budgeting. It's like Amethyst is saying, 'Show me the money, or you ain't gettin' any!'

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Juliana

2 months ago

I agree with Precious, Zero-based budgeting makes sense in this scenario.

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Valentin

2 months ago

I'm not too sure about this one, but I think B) Top-down budgeting might be the correct answer. Amethyst seems to be taking a more centralized approach to budgeting, which is typical of top-down budgeting.

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Tandra

1 months ago

I'm not sure about the answer, but D) Master budgeting could also be a possibility. It involves creating a comprehensive budget that encompasses all aspects of the business.

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Britt

2 months ago

I agree with you, I also think C) Zero-based budgeting makes sense in this scenario. It's all about justifying every expense from the ground up.

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Deangelo

2 months ago

I think C) Zero-based budgeting might be the correct answer. It seems like Amethyst wants each dollar to be justified and aligned with departmental plans and goals.

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Precious

2 months ago

I think the answer is C) Zero-based budgeting.

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Pearlene

3 months ago

Obviously, the correct answer is C) Zero-based budgeting. Amethyst's approach of requiring each line of business to justify its continued operation and allocation of resources aligns perfectly with the principles of zero-based budgeting.

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Willard

2 months ago

C) Zero-based budgeting

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Leandro

2 months ago

B) Top-down budgeting

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Bulah

2 months ago

A) Bottom-up budgeting

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