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Breakage (accounting)
Breakage is a term used in telecommunications and accounting to indicate any type of service which is unused by the customer. A good example would be gift cards or Telephone card, calling cards that have been sold but never redeemed. Revenue from breakage is almost entirely profitable, since companies need not provide any goods or services for unredeemed gift cards. It is distinct from shrinkage (accounting), shrinkage, which refers to items which are not used by the customer because they disappeared from inventory. In 2006, a blog called "The Stalwart" criticized Best Buy for using estimated breakage to improve their revenue numbers. In telecommunications In telecommunications, breakage can occur in several ways. The key elements in maximizing revenue versus service via breakage are: * Use of quanta (pay for more than you use). * Product bundling, Bundling of mixed services (force purchase of other services). * Expiry of purchased service (ideally expire monthly). * Inflexibi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Telecommunications
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that feasible with the human voice, but with a similar scale of expediency; thus, slow systems (such as postal mail) are excluded from the field. The transmission media in telecommunication have evolved through numerous stages of technology, from beacons and other visual signals (such as smoke signals, semaphore telegraphs, signal flags, and optical heliographs), to electrical cable and electromagnetic radiation, including light. Such transmission paths are often divided into communication channels, which afford the advantages of multiplexing multiple concurrent communication sessions. ''Telecommunication'' is often used in its plural form. Other examples of pre-modern long-distance communication included audio messages, such as coded d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
