Cost Value

Cost Value. Means, with respect to each item of Inventory (other than Defective Inventory) on the Closing Date, the average standard cost (determined by applicable merchant accounting unit for such item of Inventory as reflected in Sellers' Cost File), which average standard cost is inclusive of freight and shipping charges. With respect to Defective Inventory, "Cost Value" shall mean the value the Sellers and Buyer agree upon for such item during the Inventory Taking.