Prior to initiating any work, planning is necessary because when things are well-planned desired results can be achieved. Similarly, for production, planning beforehand is important as it provides us with the parameters to implement control on the activities and suggests if there are any discrepancies. Production planning entails thinking in advance about what to do and how to do something. However, scheduling involves the allocation of resources or production facilities to process work … [Read more...]
Difference Between Audit Report and Audit Certificate
An audit certificate ratifies the truth and correctness of a fact, figure or statement. On the contrary, an audit report contains a statement of fact or expression of opinion about the truth and fairness of the fact, figures and statements. Once the auditing process is complete, the auditor must prepare a report in a summarized form. This is what we call an audit report. The audit submits this report to the person or body who appoints him. But in general, the auditor submits it to the … [Read more...]
Difference Between Product-Based and Service-Based Companies
Think of all the electronic items or skincare products that you have in your house, the companies that produced those products are all product-based companies. Look it another way, think of the broadband service, electricity service or gas service that you avail at your home, the companies that render those services are all service-based companies. So, we could say that the companies that sell any tangible item to their clients are Product-Based Companies. On the other hand, Service-Based … [Read more...]
Difference Between Civil and Criminal Liability
A civil lawsuit begins when a person or an enterprise fails to perform any obligation owed to another person. The aggrieved party gets monetary compensation as damages for the loss suffered by him. The loss can be physical, mental or monetary. And the liability that arises in the case of a civil lawsuit is nothing but a civil liability. But, in the case of a criminal lawsuit, it is not the victim who initiates the case rather the government prosecutes on behalf of the victim. And when the … [Read more...]
Difference Between Agent and Servant
It is quite impossible for a person to perform all the business transactions, on his own. He/She needs someone for help, because of lack of time and business complexity. In such cases, people hire another person to perform work for them on their behalf. Such persons are Agents. The contractual agreement between principal and agent is the contract of the agency. The word 'agent' is often confused with 'servant'. A servant is one who serves others. The tasks performed by servants include - … [Read more...]
Difference Between Liquidated Damages and Penalty
In general, one party pays the amount of compensation for the loss incurred to the other party when there is a failure in the performance of the contract. So, sometimes, parties mutually decide the amount to be payable as compensation. If the amount so specified indicates a fair and genuine pre-estimate of the damages, that may take place because of the breach, it is liquidated damages. However, if the amount is not proportionate to the damages. Then, the court treats it as a penalty. Basic … [Read more...]
Difference Between DMAIC and DMADV
DMAIC expands to Define, Measure, Analyse, Improve and Control, whereas DMADV is an abbreviation for Define, Measure, Analyse, Design and Verify. Keeping aside the initial three letters of the two methodologies which have common meanings, the primary difference between them lies in the manner in which the last two steps take place. This means that if the firm is using DMAIC, the improvement and control steps emphasizes determining the means to readjust and control the process. In DMADV, the … [Read more...]
Difference Between Value Analysis and Value Engineering
Value Analysis (VA) involves the implementation of a set of techniques relating to cost reduction and cost prevention to the existing product to improve its value. On the other hand, Value Engineering (VE) is the implementation of a similar set of techniques relating to a new product at the time of its design. These two are modern methods relating to product cost optimization. Many industries have adopted these techniques. These aim to improve the value provided to the customer. These mainly … [Read more...]
Difference Between Forecasting and Prediction
When we hear the terms 'forecasting' and 'prediction', that one thing that strikes our mind is the future. In business, estimation of the demand of the product in future is called forecasting. It is not similar to prediction. Prediction is simply the guess of the manager. Forecast relies upon the scientific analysis of past data. But, prediction is dependent upon subjective considerations. The job of the manager becomes quite easier when he has an accurate forecast. It is a well-known fact … [Read more...]
Difference Between Point and Arc Elasticity
We use the point elasticity method when the changes in price and quantity demanded is very small. Hence, it is easy to calculate the elasticity at a point. And because changes are quite little, one can take the original price and quantity, as a base. But, what to do when the change is substantial? One can neither take the initial price nor the final price as a base. In such a case we use the arc elasticity method, wherein we use an average of both initial and final price. What is … [Read more...]