The distinction between an abbreviation and an acronym is that an abbreviation is the shortened form of the original word, while the acronym is a form of a new word. An acronym is created from the first letters of a series of words.
For example, the television channel, ABC stands for American Broadcasting Company. An abbreviation does not include only the first letter from the words.
For example, inc. Stands for incorporated. Another difference between the abbreviation and the acronym is that an acronym can be pronounced as a new word.
For example, the word PECO stands for Philadelphia Electric Company. In contrast, an abbreviation can be pronounced as a separate letter. Also, an abbreviation contains periods in between, while an acronym has no periods in between.