Does the scenario present an example of post-investment holdup? Your company took note of your progress toward your MBA, and when the director for customer services left the company, you were asked to take over as interim director.  You were encouraged to apply for the full-time position once you got your MBA. You served for 13 months, at which time your company was acquired by another company and your position was abolished. If yes: What is the sunk, or straned, cost? What is the contract? Was the contract breached? What are the damages?

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.