Supply 6 Cost Risk – Product-Based
Select a product from on a product-based firm and answer these questions regarding your selection:
- What does “cost risk” mean?
- What two elements contribute to the calculation of cost risk?
- Explain and discuss the impact of cost risk.
- Explain and discuss why firm fixed-price contracts are the greatest motivators of efficiency.
- Explain and discuss the potential danger of using a fixed price redetermination contract.
- Explain and discuss what objective the use of an incentive arrangement satisfies.
- What are the elements of an incentive contract?
- Explain and discuss the irony involved in setting cost targets.
- organizational structure that includes the introduction section, conclusion section, and individual sections that address each of questions noted above.
- Write a 3- to 4-page paper (page count doesn’t include the required title and reference pages).
- Your paper must be properly cited and formatted APA guidlines
- support your analysis with at least four scholarly references.
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