Accounting terms don't exist in a vaccum*: definitions and acceptable methods are rigorously defined in the 'generally accepted accounting practices' established by the American Institute of Certified Public Accountants.
Moreover, I take 'certain specified costs' in the contract to mean that only certain expenditures can be counted.
I would be utterly *un*surprised if New Line loses the Hobbit rights or is forced to sell them. Courts generally always refuse to enforce contracts in favor of fraudsters and deadbeats.
*No, they don't exist in a cow any more than they do in an airless void