Definition of the word breakage

The word "breakage" originated in the early 19th century, derived from the Middle English word "breken" meaning "to break." Initially, the term referred to the process of breaking or splitting materials, such as glass or ceramics, during the manufacturing or transportation process. The use of "breakage" specifically to refer to the loss or damage of goods during transportation or handling can be traced back to the mid-19th century. In the context of shipping, breakage referred to the loss or damage of cargo due to mishandling or accident during transit. The term gained widespread usage in the 20th century in relation to banking and finance, where it refers to the loss or damage of financial institutions' assets due to various causes, such as fraud, human error, or technology failure. Today, the term "breakage" is commonly used in various fields, including finance, logistics, and manufacturing, to describe any loss or damage incurred due to the unexpected or unintended consequences of a process.