Allied Bank Corp. utilizes the janitorial services of Marie's Clean-It Corp. to keep their buildings clean. Marie's provides all the necessary cleaning supplies, training, background security checks (because the crew works after hours), and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. If Allied Bank were to consider hiring another cleaning service to replace Marie's, which of the following would the bank incur?

Question

Quizplus · Accepted Answer

If the bank were to switch to another cleaning service that does not provide background security checks for their employees, the bank would have to incur additional costs to hire security guards to watch the work of the janitors. This would result in high switching costs for the bank. The other choices are not applicable to the situation described in the scenario.