Key Difference – Cash Rate vs Interest Rate The key difference between cash rate and interest rate is that cash rate refers to the rate at which commercial banks borrow funds from the central bank whereas interest rate refers to the rate at which a financial charge is received\paid on saved or borrowed funds. […]
Difference Between Demand Pull Inflation and Cost Push Inflation
Key Difference – Demand Pull Inflation vs Cost Push Inflation The key difference between demand pull inflation and cost push inflation is that while demand pull inflation occurs when the demand in an economy rises to outpace the supply, cost push inflation takes place when the cost of production increases in terms of the […]
Difference Between Zero Based Budgeting and Performance Budgeting
Key Difference – Zero Based Budgeting vs Performance Budgeting Budgets are important tools used by corporates and governments to assist planning for the future. Budgeting provides a basis to compare results with, evaluate performance and to take corrective actions for the future. The key difference between zero based budgeting and performance budgeting is that […]
Difference Between Sundry Debtors and Sundry Creditors
Key Difference – Sundry Debtors vs Sundry Creditors The term ‘sundry’ is used to describe an income/expense that is relatively small or occur infrequently and therefore not assigned to specific ledger accounts. They are also known as ‘miscellaneous income/expenses’ and are classified together as a group when they are presented in financial statements. The key difference […]
Difference Between Cost Benefit Analysis and Return on Investment
Key Difference – Cost Benefit Analysis vs Return on Investment There are a number of factors that should be considered when making investments, where returns play an essential role. It is also important to compare the returns in relation to the investment made or the cost incurred. Cost benefit analysis is an analysis tool […]
Difference Between Incremental and Zero-based Budgeting
Key Difference – Incremental vs Zero-based Budgeting Budgeting is an important exercise carried out by organizations to assist planning for the future. Budgeting provides a basis to compare results with, evaluate performance and to take corrective actions for the future. Incremental and zero-based budgeting are two widely used methods for budget preparation. The key […]
Difference Between Cost Control and Cost Reduction
Key Difference – Cost Control vs Cost Reduction Cost control and cost reduction are two terms that are sometimes used interchangeably; however, they have different meanings. These two represent an integral part in cost accounting, gaining constant attention of management. The key difference between cost control and cost reduction is that cost control is […]
Difference Between Sinking Fund and Amortization
Key Difference – Sinking Fund vs Amortization Investing is an activity that contains a number of options that can often be tailor made to various investor requirements. Funds can be set aside for future use or can be borrowed in order to be used in an investment. The key difference between sinking fund and […]
Difference Between Absorption Costing and Activity Based Costing
Key Difference – Absorption Costing vs Activity Based Costing Cost accounting can use a number of methods to allocate costs to products where each consist of their own merits and demerits. Costing is a vital contributor in deciding the selling prices; thus costs should be determined accurately. Absorption costing and activity based costing are […]
Difference Between Discount Allowed and Discount Received
Key Difference – Discount Allowed vs Discount Received Discounts is a main business strategy used by many companies. The two terms allowed and received themselves in discount allowed and discount received make it easy to understand the difference between the two terms. The key difference between discount allowed and discount received is that discount […]
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