definiens: allocated to a Product means indirect costs associated with the production, testing, packaging, storage and handling of product, including a reasonable allocation of facilities ' costs allocable to product manufacturing and packaging, including electricity, water, sewer, waste disposal, property taxes and depreciation of building and machinery . The allocation and calculation of [COMPANY] 's or its Subsidiaries ' Manufacturing Costs shall be made in accordance with standard cost and reasonable cost accounting methods in accordance with GAAP, applied in a manner consistent with [COMPANY] 's SECv2·Rugby Stock Purchase.doc Confidential Treatment -Noted by * and Strike - Thrfmgh 38 Confidential Treatment -Noted by * and Strike - Through customary practices . In the case of Products or Distributed Ranitidine manufactured in whole or in part by a third party or third parties on behalf of [COMPANY] or its Subsidiaries, shall include all costs paid to such third party or third parties by [COMPANY] or its Subsidiaries in order to complete the Products or Distributed Ranitidine, as the case may be, including, without limitation, costs related to the purchase of labels . With respect to products purchased by [COMPANY] or one of its Subsidiaries in finished package fonn, only the costs paid by [COMPANY] or one of its Subsidiaries to such third party to purchase such products shall be included in the calculation of Manufacturing Costs with respect to such product . Notwithstanding the foregoing, Manufacturing Costs shall not include costs relating to distribution expenses