definiens: means the fully allocated cost of manufacturing a Product, which may include the following items : ( a ) the costs of labor, including salaries, wages, benefits, payroll taxes and curren t period employee benefits, ( b ) material costs, including ra w materials, supplies, services and fees, as well a s any freight and duty ( where applicable ), ( c ) direct and factory overhead determined in accordance with [COMPANY] ’s standard internal practices and consistently applied, includ ing Product - related expenses associated with qualit y assurance testing, batch review, equipment maintenance costs, manufacturing energy and utilities, waste removal, storage, transportation, insurance, management and administr ative costs for personnel integral to manufacturing, general facilities costs, environmental engineering, intere st expense and property taxes, and ( d ) depreciation costs, including the depreciation costs of the manufacturi ng facility, machinery or equipment dedicated eithe r solely or partly ( on a pro rata basis ) to the manufacturing c ost of such Products, as applicable, all the forego ing items as determined in accordance with generally accepted ac counting principles, consistently applied, and in a manner consistent with the exemplary cost determinations s et forth in Exhibit C, and with the methods used by [COMPANY] to calculate cost of goods for its other products . * * * 1.27 is defined in Section 2.3(a)(iii )