ops 405 – ct 6
Option 1: Cost Risk â€“ Product-Based
Select a product from on a product-based firm and answer these questions regarding your selection:
- What does â€œcost riskâ€ 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.
- Your essay will require an 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 doesnâ€™t include the required title and reference pages).
- Your paper must be properly cited and formatted according to the CSU-Global Guide to Writing and APA Requirements.title and reference page. ection headers, running header, souble spaced, apa format!
- You must support your analysis with at least four scholarly references. Sources such as Wikipedia, USA Today, Fox News, or MSNBC news do not qualify as scholarly references. The CSU-Global Library is a good place to find these sources.