Accruals

Accruals are not so much a type of costs, but more of a mechanisms for getting a type of costs recorded in the period for which benefits are received for those costs. Companies typically use accruals to capture costs for which they have yet received a bill, however, those costs were incurred for the current period, whether or not they have received a bill.

Allowable/Unallowable

Allowable

Accruals made in accordance with Generally Accepted Accounting Principles are allowable for contract cost purposes.