Final ICAI || 98
The term “Verbal” implies ‘use of words’ which makes language. Verbal communication means communication through spoken and written words. The process of communication involves the use of a common set of language between the sender and the receiver. Words are the most accurate and powerful symbols. Therefore, most of the communication in work organization takes place through words.
Cost accounting is the application of accounting and costing principles, methods and techniques in the ascertainment of costs and the analysis of savings and/or excess as compared with previous experience or with standards.
CIMA defines Cost Accounting as ”the establishment of budgets, standard costs and actual costs of operations ,processes, activities or products, and the analysis of variances, profitability or the social use of funds.”
Budgets. A budget is a financial and/or quantitative statement, prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective & must be approved.