Standard Costs

Standard Costs. Means direct and indirect costs, including without limitation the materials, components, raw materials, direct labor and overhead, attributable to production, manufacturing, processing, quality control and packaging by APP of the Product, and shall be fixed year-to-year as set forth hereafter. Except for the purposes of determining Actual Costs in accordance with Section 10.6(B), --------------- Standard Costs will not include costs... incurred in connection with Bad Batches (as hereafter defined) of the Product. In addition, Standard Costs will not include general and administrative costs. The Standard Costs will be updated at the end of each calendar year for the purpose of determining Chargeable Price for the succeeding year. Except as otherwise contemplated by this definition or agreed by the Parties, Standard Costs will be determined in accordance with GAAP and standard costing principles as currently practiced by APP. View More