ops 405 – ct 6 Option 1: Cost Risk – Product-BasedSelect 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: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 doesn’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.

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