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

Measuring-unit concept

Full-disclosure concept

Cost concept

Time-period concept

Proposal A, and the PI indicates that the net present value (NPV) for this project is less than zero

Proposal A, and the PI indicates that the net present value (NPV) for this project is greater than zero

Proposal B, and the PI indicates that the net present value (NPV) for this project is less than zero

Proposal B, and the PI indicates that the net present value (NPV) for this project is greater than zero

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.