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AHIP Exam AHM-520 Topic 5 Question 85 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 85
Topic #: 5
[All AHM-520 Questions]

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:

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Suggested Answer: B

by Willard at Apr 23, 2024, 03:06 AM

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Lenna
2 days ago
I think the sunk cost would be adding new customer service representatives.
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Lenita
14 days ago
That would also be classified as a differential cost since it's a new addition for improved service.
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Melvin
15 days ago
What about the cost of installing the new switching station?
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Tamekia
16 days ago
So that means the cost of maintaining the existing staff would be a differential cost.
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Jesus
17 days ago
The sunk cost would be the expense associated with adding new customer service representatives.
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