AHM-520 Exam Dumps : Health Plan Finance and Risk Management

When analyzing budget variances, a health plan's management should pay attention to unfavorable variances only.

A health plan can reduce the problem of unattainable goals by involving responsibility managers in the preparation of their centers' budgets.

One reason that a health plan would use cost-based transfer prices to evaluate the performance of its profit centers and investment centers is because, under this method of setting transfer prices, the selling center has maximum incentive to operate effectively and control costs.

In responsibility accounting, all employees who have any influence over a health plan's department are held equally accountable for the operations and financial outcomes of that department.

increases / increases

increases / reduces

reduces / increases

reduces / reduces

Accent = unprofitable business

Bolton = high acquisition rate

Accent = unprofitable business

Bolton = low acquisition rate

Accent = high profits

Bolton = high acquisition rate

Accent = high profits

Bolton = low acquisition rate