definiens: means the cost of labor, raw materials, scrap, obsolescence, supplies and other resources directly consumed in the manuf acture, quality assurance, quality control and other testin g, storage and shipping of batches of such Products . For purposes of this definition, means th e cost of facilities, utilities, insurance ( includi ng any product liability insurance or accrual for self - insurance ), facility and equipment depreciation and other fixe d costs directly related to the manufacture, quality assura nce, quality control and other testing, storage and shipping of batches of such Product, as well as amounts paid to Third Parties under an agreement with a Third Part y as a result of the manufacture, use or sale of such Prod ucts . Fixed costs shall be allocated to such Produc t based upon the proportion of such costs directly attributable to support of the manufacturing, quality assurance, quality control and other testing, storage and shipping pro cesses for such Product . If a facility is used to m anufacture Products and has the capacity to manufacture produc ts for other programs of [COMPANY], fixed costs sha ll be allocated in proportion to the actual use of such f acility for the manufacture of Products and the cap acity to manufacture products for such other programs . For t he avoidance of doubt : ( i ) no idle capacity of a manufacturing facility, or a proportionate use ther eof, shall be included in Fully Allocated Cost of G oods except, in the case of a facility dedicated solely to the m anufacture of Products, and ( ii ) none of the develo pment costs and expenses actually paid for pursuant to Section 4.2 shall be included in Fully Allocated Cost of Go ods