Assignment:
Choose a service-based industry 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 as it relates to your selection.
Explain and discuss why firm fixed price contracts are the greatest motivators of efficiency, as it relates to your selection.
Explain and discuss the potential danger of using a fixed price redetermination contract, as it relates to your selection.
Explain and discuss the objective that is satisfied by using an incentive arrangement.
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.
Create 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 APA Requirements.