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Assignment: Supply 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.
Instructions:
• 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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