AHIP Health Plan Finance and Risk Management AHM-520 Question # 111 Topic 5 Discussion

AHIP Health Plan Finance and Risk Management AHM-520 Question # 111 Topic 5 Discussion

AHM-520 Exam Topic 5 Question 111 Discussion:
Question #: 111
Topic #: 5

Costs that can be defined by behavior are most commonly classified as fixed costs, variable costs, and semi-variable costs. From the following answer choices, select the response that correctly indicates a fixed cost and a variable cost for a health plan.


A.

Fixed Cost = depreciation on computer equipment

Variable Cost = selling expenses


B.

Fixed Cost = premium processing expenses

Variable Cost = rent on a regional office


C.

Fixed Cost = the cost for building maintenance

Variable Cost = the cost for electricity


D.

Fixed Cost = the cost for electricity

Variable Cost = fire insurance on the home office facility


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