AHIP Exam AHM-520 Topic 6 Question 94 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 94
Topic #: 6

In order to achieve its goal of improved customer service, the Evergreen Health Plan will add three new customer service representatives to its existing staff, install a new switching station, and install additional phone lines. In this situation, the cost that would be classified as a sunk cost, rather than a differential cost, is the expense associated with:

AAdding new customer service representatives

BMaintaining the existing staff

CInstalling a new switching station

DInstalling additional phone lines

Show Suggested Answer

Suggested Answer: B

by Enola at Aug 07, 2024, 01:54 AM

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Blythe

3 months ago

I agree with Emmett, the sunk cost would be the expense associated with installing a new switching station because it is a one-time cost that cannot be recovered.

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Emmett

3 months ago

I think the sunk cost would be the expense associated with installing a new switching station.

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Tawna

3 months ago

Haha, I bet the exam writers are just trying to confuse us. Sunk costs are like the ghosts of business decisions - they haunt us forever!

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Esteban

3 months ago

C) Installing a new switching station

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Iola

3 months ago

A) Adding new customer service representatives

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Marsha

3 months ago

I disagree, I believe the sunk cost would be the expense associated with maintaining the existing staff.

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4 months ago

I think the answer is C. The expense of installing a new switching station is a sunk cost, as it has already been incurred and cannot be changed regardless of the decision made.

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Evangelina

3 months ago

I think it's important to consider both sunk costs and differential costs when making decisions.

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Lai

3 months ago

I agree, the cost of installing a new switching station is a sunk cost.

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Yuette

4 months ago

I think the sunk cost would be the expense associated with adding new customer service representatives.

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