What Is Breakage and How Does It Relate to the Accounting

question 53

Essay

What is breakage and how does it relate to the accounting for sales of gift cards? Describe two methods for estimating the amount of breakage.

Differentiate between assertive and aggressive communication behaviors and their effects.

Recognize the significance of explicitly stating mistakes or ownership in apologies.

Discover effective ways to describe personal viewpoints and situations in communication.

Understand the impact of language and its use in shaping perceptions and social reality.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, representing the portion of sales revenue that exceeds variable costs.

Variable Expenses

refer to costs that change in proportion to the level of production or sales volume.

Return On Investment

A measure of the profitability of an investment, calculated by dividing the net profit from the investment by its cost.

Operating Expenses

The costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.