What Is Breakage? Breakage is a term used to describe revenue gained by retailers through unredeemed gift cards or other prepaid services that are never claimed. In these cases, the company pockets the money paid for these items, without actually providing the service or item for which the customer initially paid. Although nearly all of
What Is a Breakdown? A breakdown is a downward move in a security’s price, usually through an identified level of support, that portends further declines. A breakdown commonly occurs on heavy volume and the subsequent move lower tends to be quick in duration and severe in magnitude. Key Takeaways A breakdown is a downward move
What Is a Break-Even Analysis? Break-even analysis entails calculating and examining the margin of safety for an entity based on the revenues collected and associated costs. In other words, the analysis shows how many sales it takes to pay for the cost of doing business. Analyzing different price levels relating to various levels of demand
What Is the Breakeven Point (BEP)? The breakeven point (breakeven price) for a trade or investment is determined by comparing the market price of an asset to the original cost; the breakeven point is reached when the two prices are equal. In corporate accounting, the breakeven point (BEP) formula is determined by dividing the total
What Is a Break-Even Price? A break-even price is the amount of money, or change in value, for which an asset must be sold to cover the costs of acquiring and owning it. It can also refer to the amount of money for which a product or service must be sold to cover the costs
What is the Breakeven Tax Rate Breakeven tax rate is a tax rate above what is not profitable to engage in a transaction. In other words, the breakeven tax rate is the rate at which it would neither be advantageous or disadvantageous for a company to conduct a certain transaction. A breakeven tax rate allows people to
What Is Breakeven Yield? The breakeven yield is the yield required to cover the cost of marketing a banking product or service. Breakeven yield is the point at which the money, which the sale of a product or service brings in, is equal to the cost of marketing the product or service. A financial institution
What Is the Questrom School of Business? The Questrom School of Business is a business school located at Boston University in Boston, Massachusetts. Founded in 1913, the school was previously known as the Boston University School of Management. In March 2015, the school changed its name following a $50 million donation by a prominent businessman
What Is the Balance of Trade (BOT)? Balance of trade (BOT) is the difference between the value of a country’s exports and the value of a country’s imports for a given period. Balance of trade is the largest component of a country’s balance of payments (BOP). Sometimes the balance of trade between a country’s goods and
What Is a Build-Operate-Transfer (BOT) Contract? A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships. The BOT scheme refers to the initial concession by a public entity such as a local government to a private firm to both build and operate the project in question. After
