Accounting Systems, Standards, and Policies: Effective accounting systems are crucial for accurate financial reporting. They include components like the general ledger, subsidiary ledgers, and financial statements. Accounting standards (such as GAAP or IFRS) ensure consistency. Policies cover revenue recognition, expense recognition, inventory valuation, and depreciation.

Direct Costs and Unallowable Costs: Direct costs (e.g., materials, labor) are directly tied to specific projects. Unallowable costs (e.g., entertainment expenses, personal costs) cannot be charged to projects.

Indirect Cost Allocation: Indirect costs (e.g., overhead, administrative salaries) are necessary for operations but not project-specific. Allocation methods (e.g., activity-based costing) distribute these costs appropriately.