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.