AHIP Exam AHM-520 Topic 2 Question 86 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 86
Topic #: 2

[All AHM-520 Questions]

If the operational budget prepared by the Satilla health plan is typical of most operational budgets, then

AIts purpose is to track Satilla's operations and short-term profitability

BThe key information source for this operational budget is Satilla's external environment

CThe time frame for this operational budget is three to five years

DIts focus is on the threats that Satilla faces from its external environment

Show Suggested Answer

Suggested Answer: C

by Daryl at May 01, 2024, 06:23 PM

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Millie

4 hours ago

D is just silly. Operational budgets focus on the numbers, not the threats. Although I do worry about the threats facing Satilla's health plan. *laughs*

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German

6 days ago

C is definitely wrong. Operational budgets usually cover a 12-month period, not 3-5 years. That's more for a strategic plan.

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Teresita

8 days ago

I'm not sure about that. Wouldn't the key information source be Satilla's internal data, not its external environment?

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Yuonne

18 days ago

Option A sounds right to me. Operational budgets are typically used to track a company's day-to-day operations and short-term financial performance.

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Latosha

3 days ago

I agree, operational budgets are important for tracking day-to-day operations.

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Norah

18 days ago

I believe the time frame for the operational budget is three to five years.

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Stanford

20 days ago

I agree with Geraldo, it's important to monitor short-term profitability.

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Geraldo

24 days ago

I think the purpose is to track operations and profitability.

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