Part 1: Fundamentals of Cost Accounting

Chapter 1: Accounting System and Purpose of Cost Accounting
1.1 Accounting System
1.2 The Role of Cost Accounting

Chapter 2: The Concept of Cost
2.1 The meaning of cost
2.2 Classification of cost

Chapter 3 Cost Flow and Measurement
3.1 Manufacturing company management activities and inventory assets
3.2 Flow of manufacturing costs
3.3 Understanding the Manufacturing Cost Statement

Chapter 4 Types of Cost Accounting
4.1 Significance of the cost accounting system
4.2 Individual cost calculation and comprehensive cost calculation
4.3 Actual cost calculation, normal cost calculation, standard cost calculation
4.4 Full costing and variable costing
4.5 Combination of cost calculation methods

Cost Accounting for Financial Reporting, Part 2

Chapter 5 Individual Cost Calculation
5.1 Basics of Individual Cost Calculation
5.2 Application of individual cost calculation
5.3 Allocation of manufacturing overhead costs

Chapter 6 Normal Costing
6.1 Significance of normal cost calculation
6.2 Manufacturing overhead cost allocation difference
6.3 Adjustment of manufacturing overhead cost allocation differences

Chapter 7 Comprehensive Cost Calculation
7.1 Basics of Comprehensive Costing
7.2 General procedure for comprehensive cost calculation
7.3 Application of comprehensive cost calculation
7.4 Cost Flow Assumptions

Chapter 8 Combined Costing
8.1 Basis of joint cost allocation
8.2 Method of allocating combined costs
8.3 Other issues in joint cost calculation

Chapter 9 Cost Calculation by Sector
9.1 Basis of cost accounting by sector
9.2 Cost calculation procedures by sector
9.3 Cost allocation between auxiliary departments

Chapter 10 Activity-Based Costing
10.1 Basis of Activity-Based Costing
10.2 Activity-based costing procedures
10.3 Hierarchy of Activity Costs
10.4 Usefulness and Limitations of Activity-Based Costing

Part 3: Cost Accounting for Internal Control

Chapter 11 Standard Costing
11.1 Basics of Standard Costing
11.2 Setting cost standards
11.3 Basics of Difference Analysis
11.4 Analysis of differences by cost element
11.5 Method of adjusting cost differences

Chapter 12 Variable Costing
12.1 Cost behavior of manufacturing costs
12.2 Significance of variable cost calculation
12.3 Comparison of profit and loss between variable costing and full costing
12.4 Usefulness and Limitations of Variable Costing

Chapter 13: Cost, Operating Volume, and Profit Analysis
13.1 Basics of CVP Analysis
13.2 Break-even point analysis
13.3 Safety limits
13.4 Operating Leverage
13.5 Assumptions and Limitations of CVP Analysis

Chapter 14 Strategic Cost Management
14.1 Product Life Cycle Costing
14.2 Target Costing
14.3 Quality Cost Calculation

Accounting is an information system that provides an organization's economic information to various information users, such as managers, investors, and creditors.
Accounting requires different types of information depending on who the information users are, and is broadly divided into financial accounting and management accounting based on the type of information users.
Financial accounting aims to provide useful accounting information to external users, such as shareholders and creditors, when making economic decisions, while management accounting aims to provide useful information to internal stakeholders, such as managers, when making economic decisions related to the company.

So what is the role of cost accounting? Cost accounting is the field of calculating the costs of various entities, with its primary purpose being calculating product costs.
In addition, it aims to provide information necessary for cost management and control, and performance measurement and evaluation.
Here, calculating the cost of goods sold is a part of financial accounting, which involves evaluating inventory assets on the balance sheet and calculating the cost of goods sold on the income statement.
And cost management and control, performance measurement and evaluation are related to management accounting, and the purpose is to provide the CEO or middle managers with the information they need to manage the company.
In this way, cost accounting is a field of accounting that provides useful information to financial accounting and management accounting.

This textbook explains the basic concepts of cost accounting as easily as possible from the perspective of learners who are new to cost accounting, and introduces various cost calculation methods.
First, Part I (Chapters 1 to 4) covers the basics of cost accounting.
Next, Part II (Chapters 5 to 10) covers cost accounting for financial reporting, and deals with cost information required for financial accounting.
That is, you will learn various cost calculation methods and cost allocation for calculating product cost.
Finally, Part III (Chapters 11 to 14) covers cost accounting for internal control and the cost information required for management accounting.
Management accounting primarily deals with techniques for using calculated costs for internal control and decision-making. Learn how cost accounting produces cost information that helps achieve these management accounting purposes.

While cost accounting is a field of accounting that deals with the measurement and calculation of costs, management accounting deals with the use of cost information derived from cost accounting, so cost accounting and related accounting are closely related.
Therefore, through this textbook, we will learn about cost calculation from the perspective of an information producer, and in the subsequent management accounting studies, we will examine how the calculated cost information is utilized from the perspective of an information user.
In other words, cost accounting is a prerequisite for management accounting, which will be studied later, and is also related to financial accounting, so it is necessary to have a solid foundation in cost accounting.

This textbook will be helpful not only to students at Korea National Open University who wish to effectively learn the core concepts of cost accounting, but also to business executives who wish to improve their practical accounting skills.