AHIP Health Plan Finance and Risk Management AHM-520 Question # 128 Topic 7 Discussion

AHIP Health Plan Finance and Risk Management AHM-520 Question # 128 Topic 7 Discussion

AHM-520 Exam Topic 7 Question 128 Discussion:
Question #: 128
Topic #: 7

The Proform Health Plan uses agents to market its small group business. Proform capitalizes the commission expense relating to this line of business by spreading the commissions over the premium-paying period of the healthcare coverage. This approach to expense recognition is known as:


A.

Systematic and rational allocation


B.

Matching principle


C.

Immediate recognition


D.

Associating cause and effect


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