When a new word processing software program is released, companies that might use it must consider not only the cost of buying it, but the costs of retraining all their employees to use it, and of training their support staff to install and operate it. These additional costs beyond the purchase price are known as __________ costs.

Question

Quizplus · Accepted Answer

Switching costs refer to the expenses a company incurs when changing from one product or service to another. In this context, the costs associated with retraining employees and support staff for a new word processing software program are considered switching costs.

When a New Word Processing Software Program Is Released, Companies