Advantages Of Audit Program

Main advantages or benefits of audit program can be highlighted as follows:

1. Proper Supervision And Control

Properly developed audit program helps the auditor to know the progress of work and judge the efficiency of staffs. So, audit work can be properly supervised and controlled.

2. Time And Labor Saving

Audit work is performed on the basis of guidelines and procedures included in the audit program. Works can be performed smoothly without any confusion or difficulties. So, audit program helps to save time and effort. 

3. Proper Distribution Of Work

It helps to distribute the audit work among the staffs according to their knowledge, skills and experience. It increases the working efficiency of the employees.

4. Maintaining Uniformity

It helps to maintain uniformity of the audit work.

     Also Read: 

5. To Maintain Continuity

Audit program includes complete audit procedures and guidelines. So, audit work will not be affected in the absence of any staff. New staff can easily handle the job.

6. Proof In The Court

Audit program is a legal document and auditor can present it in the court if needed.
advantages audit program

7. Future Reference

It can be used for future reference also.

8. Detection Of Error

Audit Program detects errors occurred in the audit process and helps the auditor to prevent such errors.

9. Suitable For Large Business

Audit program is useful and suitable for large business houses with large volume of transactions.
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Advantages Of Auditing

Accounting , Business
Main advantages or benefits of auditing can be highlighted as follows:

1. Detection And Prevention Of  Errors

Auditing identifies accounting errors and frauds in the books of account and helps to prevent such errors and weakness in the accounting process.

2. Helpful In Obtaining Loan

Audited reports of previous period are required to obtain loan from banks and other financial institution. So, audit is helpful in obtaining business loan.

3. Accessing Tax Liabilities

Audited reports are easily accepted by tax authorities. So, audit is useful to access tax.

4. Maintenance Of Account

Regular auditing gives moral pressure to the employees of the accounting department. It helps proper maintenance of books of accounting. So, audit is very helpful for up-to-date accounting.

5. Increase Goodwill

Audit helps to increase goodwill of the firm. It also helps to increase public image.
advantages of auditing
6. Easy Comparison

Auditing facilitates comparison of accounts of different periods which helps the management to know the current position of the business.

7. Increase Operational Efficiency

Valuable suggestions and instructions provided by the auditor helps to increase operational efficiency of the business.

    Also Read: 

8. Helpful In Future Planning

Audit helps the management to make future plans and policies. Past audited statements are useful in planning and decision making.

9. True Profit Or Loss

Auditing helps to disclose true profit or loss of the business by which the management and other users can know the  financial position of  business.

10. Claim Settlement 

Audit helps to settle claims (retirement or death) among business partners.
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Limitations Of Statistics

Education , General
Major limitations or drawbacks of statistics can be highlighted as follows:

1. No Study Of Individual Items

One of the main disadvantages of statistics is that it does not deal with single or isolated items. It deals with the measurement of groups or masses only. So, data and information of single item cannot be obtained.

2. Not Applicable For Qualitative Phenomenon

Statistics is applicable only for quantitative data (data of those items which can be measures in numbers) such as income, expenses, wages, height etc. Qualitative phenomenon(which cannot be measured in numbers) such as blindness, efficiency, honesty etc. are completely ignored.

3. Applicable Only For Homogeneous Data

Statistics is applicable for homogeneous data only. It cannot study heterogeneous data. So, data of similar nature is required to apply statistical methods.

4. No 100% Accuracy

100 % accurate result cannot be obtained from statistical methods.

5. Not Universally True

Statistical facts are totally based on the averages. So, its laws are not universally true.
limitations of statistics

6. Requires Special Knowledge

It requires special knowledge to apply statistical laws. Simple knowledge of mathematics or economics is not sufficient to work with statistical data.

7. Possibility Of Mislead

Sometimes, result obtained from statistics may be misleading because of improper collection and interpretation of data.
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Advantages And Disadvantages Of Standard Deviation

Education , Statistics
Advantages Or Merits Of Standard Deviation

The main advantages of standard deviation can be expressed as follows:

1. Rigidly Defined

Standard deviation is rigidly defined measure and its value is always fixed.

2. Best Measure

Standard deviation is based on all the items in the series. So, it is the best measure of dispersion.

3. Less Affected

Standard deviation is least affected by the sampling fluctuations than other measures (mean deviation and quartile deviation).

4. Suitable For Algebraic Operation

Standard deviation can be used for mathematical operations and algebraic treatments. It is also applicable in statistical analysis.


Disadvantages Or Drawbacks Of Standard Deviation

Some of the major disadvantages of standard deviation can be expressed as follows:

advantages and disadvantages of standard deviation

1. Complex Method

Standard deviation is complex to compute and difficult to understand as compared to other measures of dispersion.

       Also Read: 

2. High Effect

Standard deviation is highly affected by the extreme values in the series.

Pros And Cons Of Standard Deviation In Short

Pros:
- It is well defined and well known measurement of dispersion
- It is useful for mathematical, algebraic and statistical treatments
- It is less affected by fluctuations

Cons:
- It is difficult to calculate and hard to understand
- It is affected by extreme items or values
- Not applicable for open end class frequency distribution
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Advantages And Disadvantages Of Mean Deviation

Education , Statistics

Merits Or Advantages Of Mean Deviation

The main advantages of mean deviation can be highlighted as follows:

1. Simple And Easy


Mean deviation can be computed easily by using simple formula. It can be easily understood.

2. Easy Comparison

Different items of observations can be easily compared with mean deviation.

3. Better Measure

Mean deviation is better than quartile deviation and range because it is based on all the observations of the series.

4. Less Affected

Mean deviation is less affected by the extreme values in the series while comparing to standard deviation.

5. Rigidly Defined

Mean deviation is rigidly defined. So, it has fixed value.

6. Usefulness

It is very useful in various fields such as economics, commerce, economics etc.

      Also Read: 
Demerits Or Disadvantages Of Mean Deviation

The major drawbacks or disadvantages of mean deviation can be highlighted as follows:

1. Difficulty

It becomes difficult to compute mean deviation in case of fractions.

2. Not Applicable

Mean deviation is not applicable for algebraic calculations.
advantages and disadvantages of mean deviation
3. Ignores Negative Signs

Mean deviation is not a good measure as it ignores negative signs of deviations. 

4. Mean deviation cannot be obtained in case of open end class series.
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Advantages And Disadvantages Of Quartile Deviation

Education , Statistics
Advantages/Merits Of Quartile Deviation (Q.D)

Major advantages of quartile deviation can be studied as follows:

1. Rigidly Defined

Quartile deviation is rigidly defined measure of dispersion. So, its value is always fixed.

2. Easy Calculation

It can be computed easily by using following formula:

Q.D = (Q3-Q1)/2

(Where, Q.D = Quartile Deviation, Q3= Upper Quartile And Q1= Lower Quartile)


3. Better Than Range

Quartile deviation is far better than range because it considers 50% terms or the series.

4. It can be determined in case of open end class distribution also.
advantages disadvantages quartile deviation

5. Less Affected

Quartile deviation is less affected by extreme values.

Disadvantages Or Demerits Of Quartile Deviation (Q.D)

Some of the major disadvantages of quartile deviation can be expressed as follows:

1. Quartile deviation is not based on complete items of the series as it ignores 50% of the observations.
     Also Read: 

2. Q.D is not applicable for further mathematical treatments or algebraic calculations.

3. The value of Q.D is much affected by sampling fluctuations.

4. Complex And Time Consuming

It requires some mathematical knowledge and time to compute quartile deviation. So, it is complex and time consuming method than range.
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Advantages And Disadvantages Of Range

Education , Statistics
Advantages/Merits Of Range

Main advantages of range can be highlighted as follows:

1. Rigidly Defined

Range is rigidly defined measure of dispersion. So, it value is always fixed.

2. Simple And Easy Method

It does not require special mathematical knowledge to compute range. It can be calculated simply by subtracting lowest value from the largest value in the series. It is very simple to understand.

3. Usefulness 

Range can be used for quality control purpose. It is also useful for weather forecast.

Disadvantages/Demerits Of Range

The main drawbacks or disadvantages of range can be pointed out as follows:

1. Not Based All Items

Range may not be considered as the reliable method of dispersion because it is  not based on the all items in the series.

advantages disadvantages of range

2. Highly Affected

Range is highly affected by sampling fluctuations.


3. Range cannot be determined in case of open end class distribution.

4. It is not suitable for further algebraic treatments and other mathematical calculations.

Pros And Cons Of Range In Short

Pros:
- It is well defined measure of dispersion
- It has always fixed values
- It is very simple to determine and everyone can understand easily
- It can be used to test product quality, weather forecasting, fluctuations in share prices etc.

Cons:
- It cannot be calculated for open end series
- It does not assist for further mathematical treatment
- It is unstable because its value is affected by the change in sampling fluctuations
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Advantages And Disadvantages Of Harmonic Mean

Education , Statistics
Merits Or Advantages Of Harmonic Mean

Some of the notable advantages of harmonic mean can be expressed as follows:

1. Rigidly Defined Method

Value of harmonic mean is always fixed as it is rigidly defined.

2. Appropriate For Rate And Time

Harmonic mean is suitable for the computation of average of time, rate and ratios.

3. Useful For Further Treatment

Harmonic mean is suitable for algebraic calculation and other mathematical treatments.

4. No Any Effect

Like geometric mean, harmonic mean is also not affected by sampling fluctuations.

advantages disadvantages harmonic mean

5. Based On Observations

Harmonic mean is totally based on all the items or observations of the series. So, all the items are required to determine it.

Demerits Or Disadvantages Of Harmonic Mean

Major drawbacks or disadvantages of harmonic mean are as follows:

1. Complex Method

Calculation of harmonic mean is a difficult process. Good mathematical knowledge is required to compute it. So, it is complex to determine and hard to understand.

     Also Read: 

2. Unobtainable

Harmonic mean cannot be obtained if the value of any item in the series is zero.

3. Limited Scope

Its scope is limited than arithmetic mean.

4. High Effect

Harmonic mean is highly affected by the extreme values in the series.
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Advantages And Disadvantages Of Geometric Mean

Education , Statistics
Advantages/Merits Of Geometric Mean

Main advantages of geometric mean can be expressed as follows:

1. Rigidly Defined

As geometric mean is rigidly defined, its value will be always fixed.

2. Based Upon Items

Geometric mean is based on all the items of the series.

3. Suitable For Percentage And Ratio

Geometric mean can determine most correct average while dealing with percentages and ratios.

4. Less Affect

Geometric mean is less affected by sampling fluctuations.

advantages disadvantages geometric mean

5. Useful For Further Calculation

It is useful for algebraic calculation and other mathematical treatments.

Disadvantages/Demerits Of Geometric Mean

The main drawbacks or disadvantages of geometric mean can be expressed as follows:

1. Complex Method

It requires different mathematical knowledge ( logarithm, ratio, roots etc) to determine geometric mean. So, it is complex to compute and difficult to understand.

    Also Read: 

2. Less Popular

Because if difficulty in calculation and complex to understand, it is not commonly used method.

3. Not Applicable

Geometric mean cannot be calculated in the case of negative or zero value of any variable in the series.

4. In case of open end distribution, geometric mean cannot be obtained.
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Advantages And Disadvantages Of Mode

Education , Statistics
Advantages Or Merits Of Mode

The Main advantages  of mode can be studied as follows:

1. Simple And Easy Method

Mode can be easily computed and understood. In some cases, it can be obtained simply by inspection without doing mathematical calculation.

2. No Effect

Mode will not be affected by extreme observation or values.

3. Widely Used Method

Mode is most commonly used technique of computing average like average wages of employees, average marks of students etc.

4. Suitable For Open End Frequency

Mode can be easily obtained for open end distribution.

5. Graphic Representation

Mode can be located and represented graphically.

6. Mode can be determined without knowing all the values in the series.

     Also Read: 

Disadvantages/Demerits Of Mode

The major drawbacks or disadvantages of mode can be studied as follows:

1. Not Well Defined

Mode cannot be clearly defined in case of multi-model series.

2. Not Based On All Values

Mode is not based on all values of the series.

advantages disadvantages of mode

3. Not Suitable For Algebraic Treatment

Mode is not applicable for further statistical analysis and algebraic calculation.

4. Fluctuation

Mode is highly affected by fluctuation in sampling as compared to mean and median.

Pros And Cons Of Mode In Short

Pros:
- It can be determined easily just by inspecting the set of data
- Very easy to understand
- It is not affected by extreme values like arithmetic mean
- It is suitable for open end frequency

Cons:
- It is not clearly defined
- It is affected by sampling fluctuations
- It is not useful for further algebraic treatment
- It does not consider all the values in the series
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Advantages And Disadvantages Of Median

Education , Statistics
Some of the notable advantages and disadvantages of median can be expressed as follows:

Advantages/Merits Of Median

1. Easy And Simple

Median can be calculated with little mathematical knowledge. Sometimes it can be determined simply by inspection also. So, it is a simple and easy method to obtain the middle value of the series.

2. Unaffected By Extreme Values

Median is the middle value of the series, so it is not affected by the extreme value like mean.

3. Graphical Representation

Median can be easily represented graphically.

4. Suitable For Open End Distribution

Median can be correctly calculated for open end distribution where mean cannot obtain accurate result.

5. Suitable For Qualitative Phenomenon

Median can be used for qualitative phenomenon such as beauty, honesty, intelligence etc. 

6. Further Study

Median can be used for the purpose of further studies also.


1. Tedious Process

While calculating median, all the data should be arranged in ascending or in descending order. In case of large number of items, it becomes tedious and time consuming.

2. Unsuitable For Even Observation

Median provides correct result in case of odd observation. When the number is observation is even it fails to obtain accurate result.

3. Unsuitable For Algebraic Treatment

It is not applicable for further algebraic calculation.

4. Unsuitable For Fraction And Percentage

If the data of observation in a series is in fraction or in percentage, it becomes complicated to compute correct median. 
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Advantages And Disadvantages Of Arithmetic Mean

Education , Statistics
Main advantages and disadvantages of arithmetic mean can be highlighted as follows:

Advantages/Merits Of Arithmetic Mean

1. Simplicity

Arithmetic mean is most widely applied measure because it can be calculated very easily and can be understood without any complication.

2. Rigid Formula

The value of arithmetic mean is always fixed as it is defined by rigid formula.

3. Helps Further Study

Arithmetic mean can be used for further study especially for algebraic calculation and statistical analysis. 

4. Minimum Fluctuation

Arithmetic mean is less affected by fluctuation in sampling.

5. No Need Of Data Arrangement

Arithmetic mean does not require the arrangement of data and dividing of data like other measures of central tendencies (i.e median and mode).

6. Based On Observation

Arithmetic mean is completely based on observation, So, it represents the data not the position of terms.
     Also Read: 

Disadvantages/Demerits Of Arithmetic Mean

1. Arithmetic mean cannot be determined if any item of observation is missing.
advantages disadvantages arithmetic mean
2. AM is too much affected by extreme values of the series.

3. AM is not applicable for qualitative data.

4. In case of open end class intervals, arithmetic mean cannot be calculated.

Pros And Cons Of Arithmetic Mean In Short

Pros:
- It is easy to determine and simple to understand
- Its value is always fixed
- It is useful for algebraic and statistical analysis
- Arrangement of data is not required

Cons: 
- It is not useful for open end class intervals
- It is influenced by extreme values in the series
- It cannot be determined for qualitative data
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Advantages Of Diagrammatic And Graphical Representation

Education , Statistics
Main advantages or merits of diagrammatic and graphical presentation of data can be expressed as follows:

1. To Simplify The Data

Diagrams and graphs present data in effective way that can be understood by any one easily. So, diagrams and graphs are the best way to simplify the complex data.

2. Attractive Presentation

Diagrams and graph present complex data and information in pleasant and appealing ways and leave good visual impact. So, diagrammatic and graphical representation of data easily attracts the viewers.

3. Facilitate Comparison

Diagrams and graphs help to compare and analyze information between different sets of data.

4. Helpful In Forecasting

Forecasting is possible with the help of past trend and series presented in the graph.

advantages graphical representation

5. Save Time And Labor

Graphs and diagrams are prepared to simplify complex data to make understandable to anyone. They are attractive and easy to analyze. So, they help to save time and effort to understand the presentation.

    Also Read:

6. Provide Reference

Diagrams and graphs can be used as a source of reference for different researches and studies.

7. Facilitates Decision Making

Graphs and diagrams provide actual information about the past trend which helps in future planning and decision making process of the organization.

8. Increase Goodwill

Illustrative and attractive report presented in diagrams and graphs help to increase goodwill and image of the firm.
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Advantages Of Tabulation

Education , Statistics
Main advantages or benefits of tabulation of data can be expressed as follows:

1. To Simplify Complex Data

Tabulation simplifies complex data by arranging them systematically in a meaningful manner. So, tabulation converts confusing information in understandable form.

2. To Facilitate Comparison

Tabulation of data helps to compare different sets of series.

3. Saving Time And Space

Large number of information can be condensed systematically in one table. So, it saves, space, time and money also.
advantages of tabulation
       Also Read:

4. Analysis And Interpretation

Tabulation facilitates comparison, analysis and interpretation of data easily with the help of statistical measures such as averages, dispersion, correlation, regression, deviations etc.

5. Provide Reference

Tabulated data and information can be used in different researches and studies. So, it also serves as a source of reference.
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Advantages And Disadvantages Of Random Sampling

Education , Statistics
Merits Or Advantages Of Random Sampling

The main advantages of random sampling can be expressed as follows:

1. Simple Method

Simplicity is one of the major advantage of this sampling method. Random sampling is very simple method of data collection. It does not require any special skill or knowledge to study the items.

2. Time And Money Saving

It takes very short time to complete the survey as it does not require to examine the whole universe. So, it is time and money saving technique.
3. No Personal Bias

In this method, selection of item depends on chance. So, investigator cannot select any unit as per his wish. So, it is free of personal bias.

4. Error Detection

Under random sampling, statistical errors can be easily detected.

advantages disadvantages random sampling
Demerits Or Disadvantages Of Random Sampling

Some notable drawbacks of random sampling can be expressed as follows:

1. Difficult To Implement

Random sampling is very difficult to implement in such cases like scattered universe, heterogeneous population and widely dispersed items.

    Also Read: 

2. Higher Rate Of Error

It has larger error rate than stratified sampling.

3. Applicability 

Random sampling is not applicable without the complete and up to date list of  all items in the universe.

4. Monotony

Investigator may suffer from monotony because of recitative work for a long time while collecting data.
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Disadvantages Of Sampling Method

Education , Statistics
Major drawbacks or disadvantages of sampling method of data collection can be studied as follows:

1. Inadequacy Of Sample

Sampling method is not suitable if the universe is small and sample size is inadequate. Census method is appropriate for small and heterogeneous items.

2. Misleading

If sampling is conducted by unskilled personnel, it may defunct the process and mislead the result which leads to wrong conclusion.

3. Specialized Knowledge

Special knowledge is required to carry out sampling task. Proper analysis is not possible without the knowledge of good sampling.
disadvantages of sampling

4. Chance Of Error

There is a high chance of statistical error in this method.

      Also Read: 

5. Personal Bias

There is a chance of personal bias in this technique of collecting information because it is a judgmental task of the investigator. 

6. Lack Of Proper Size

It is very complex task of find out proper sample size for conducting survey.
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Advantages Of Sampling Method

Education , Statistics
Main advantages or benefits of sampling method of data collection can be studied as follows:

1. Less Costly

In census method, each and every item of the universe is studied. But in sampling method, information is obtained from small portion of universe. So, it is less costly method of data collection.

2. Less Time

Sampling method consumes less time and effort than census method of data collection.

3. Detailed Information

Sampling helps to obtain detail information by studying a small part of the universe.
advantages of sampling
4. Accuracy And Reliability

Sampling helps to obtain accurate and reliable information because it has limited area of operation.


5. Suitability

Sampling is suitable for small organization with limited resources. Research can be conducted with the small portion of the area.

     Also Read: 

6. Applicable For Large Universe

Census method is not applicable for the research of large or infinite size. So, sampling is suitable for the research of large universe.

7. Checking Of Census

Sampling can be used to check the accuracy of census enquiry also.
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Advantages And Disadvantages Of Census Method

Education , Statistics
Main advantages and disadvantages of census method of data collection can be highlighted as follows:

Advantages/Merits Of Census Method

1. Accuracy And Reliability

Census method ensures higher degree of accuracy than other techniques. It provides complete information because each and every item is investigated carefully. So, it is very reliable method of data collection.

2. Suitability

This method is effective if the universe is small.

3. Intensive Study

Census method completely examines each unit and gathers important data for intensive study.

4. Indispensable 

Census method is indispensable in certain cases where other methods cannot provide reliable and accurate result.

5. Heterogeneous Units

Census method is applicable to examine heterogeneous units.

advantages and disadvantages of census

Disadvantages/Demerits Of Census Method

1. Costly Method

It is very costly method of data collection.

2. Time Consuming

It consumes more time and labor to complete data collecting task.

Also Read:

3. Unsuitability

This method is not applicable or suitable if the universe is large. It is suitable only for small universe.

4. Chance Of Errors

There is a high chance of statistical errors in this method.

Pros And Cons Of Census Surveys In Short

Pros:
- It provides the most reliable and accurate data than other survey methods
- It gives less biased result
- It is suitable for small population 

Cons:
- It requires more cost, time and effort to conduct census surveys
- It is not applicable if the population or universe is very large
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Advantages Of Protectionism

Business , Marketing
Main benefits or advantages of trade protectionism can be studied as follows:

1. To Protect Emerging Industries

Protectionism guards infant national industries from foreign firms. It is a defensive measure which helps the newly established domestic business to grow and well-flourished.

2. To Create Job Opportunity

Protectionism helps to create employment opportunities for local people. If local industries are well-flourished then job opportunities are created in the country.

3. To Prevent Dumping

Foreign producers export their goods at very low price and attract customers in order to capture the market. So, protectionism is useful to protect against dumping.

                 
advantages of protectionism

      Also Read: 

4. Correction Of Balance Of Payment

Protectionism policy helps to correct balance of payment of the nation by discouraging importing and encouraging exports.

5. Preserving National Resources

Protectionism restricts the exports of national resources of the country. It helps to limit the over exhaustion of resources. 
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