Key Difference – Perpetual vs Periodic Inventory System Having an effective inventory system is essential for companies that operate with a significant level of inventory. The objective of both perpetual and periodic inventory systems is to determine the ending inventory balance and the cost of goods sold. The key difference between perpetual and periodic […]
Difference Between Autocratic and Bureaucratic Leadership
Key Difference – Autocratic vs Bureaucratic Leadership Leadership style should be carefully chosen depending on the type of the organization and the workforce. Autocratic and bureaucratic leadership are two popular styles of leadership among many. The key difference between autocratic and bureaucratic leadership is that autocratic leadership is a leadership style where the leader […]
Difference Between Common Stock and Retained Earnings
Key Difference – Common Stock vs Retained Earnings The key difference between common stock and retained earnings is that common stock is the shares that represent the ownership of the company by equity shareholders whereas retained earnings are a portion of the company’s net income which is left after paying out dividends to shareholders. […]
Difference Between Disguised and Seasonal Unemployment
Key Difference – Disguised vs Seasonal Unemployment Disguised and seasonal unemployment are two main types of unemployment that arise due to different reasons. A high unemployment level is not a healthy indication of an economy; thus many governments adopt a number of policies to maintain unemployment at a low level. The difference between disguised […]
Difference Between Reorder Level and Reorder Quantity
Key Difference – Reorder Level vs Reorder Quantity Reorder level and reorder quantity are two commonly used terminology that becomes very important in ordering raw materials for production. Deciding the reorder level and reorder quantity is essential in order to allow smooth production where delays will be costly. The key difference between reorder level […]
Difference Between Inherent Risk and Control Risk
Key Difference – Inherent Risk vs Control Risk Inherent risk and control risk are two important terminologies in risk management. Business actions are subjected to various risks by nature that can reduce the positive effects they can bring to the organization. The key difference between inherent risk and control risk is that inherent risk […]
Difference Between Customer Centric and Customer Focused
Key Difference – Customer Centric vs Customer Focused The key difference between customer centric and customer focused is that customer centric organizations operate by focusing their marketing efforts on customers’ lifetime value by offering a number of products that they want in different phases of life whereas customer focused organizations operate with a strong […]
Difference Between Direct and Indirect Cash Flow
Key Difference – Direct vs Indirect Cash Flow Direct and indirect cash flow are two methods of arriving at the net cash flow from operating activities in the cash flow statement. Cash flow statement consist of three main sections: net cash flow from operating activities, net cash flow from investing activities and net cash […]
Difference Between Cash Flow and Fund Flow Statement
Key Difference – Cash Flow vs Fund Flow Statement The cash/fund availability is a vital aspect for the routine survival of the business. Cash flow statement and fund flow statement are two key statements prepared by companies. However, these two statements are often confused since the purpose of both is to demonstrate the cash/fund […]
Difference Between Investing and Financing Activities
Key Difference – Investing vs Financing Activities Investing activities and financing activities consist of main two sections in the cash flow statement where the cash inflow and cash outflow from the above activities are recorded. The key difference between investing and financing activities is that investing activities record the cash inflow and outflow that […]
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