Question

Going to another seller means that a company will have to retrain their staff to use a new application. This type of cost would be an example of:

a) training costs
b) educational costs
c) employee costs
d) switching costs
e) none of the above

Answer 1

Switching costs encompass the expenses associated with retraining staff to use a new application or system.

Step-by-step explanation:

The cost of retraining staff to use a new application when going to another seller would be an example of switching costs. Switching costs refer to the expenses incurred when a company switches from one supplier or service provider to another. This can include not only the monetary cost of acquiring new software or training, but also the time and effort required to familiarize employees with the new system.