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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With S
  5. Switching Costs

Switching Costs

Definition of 'Switching Costs'

Costs which arise when existing costs are sunk. Changing supplier then incurs additional costs.

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Related Terms

Agency CostsCurrency SwitchingAdjustment CostsAdjusted Present ValueBuffer StockFixed CostsOverhead CostsOverheadsSensitivity AnalysisShoe-Leather CostsTwo-Part TariffVariable CostVariable CostsAnnualiseAnnualizeAverage CostBreak-EvenCarryCash and CarryComparative Costs

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