AHIP AHM-520 Exam With Confidence Using Practice Dumps

Internal analysis of the health plan can be more detailed and more specific than can external analysis

Internal analysts are more likely than external analysts to want comparative financial data about the health plan

Only internal analysts use trend analysis to analyze the health plan's financial statements

Only internal analysts typically conduct the financial analysis of the health plan themselves

Measure its performance and practices against those of other companies to help identify those practices that will lead to superior performance in a variety of financial and non-financial areas

Calculate the percentage changes in its financial statement items over several consecutive accounting periods

Determine both the direction and velocity of trends in its financial statements

Display only percentage relationships in its financial statements

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.