definiens: means, with respect to an Alliance Product or the service or support of an Alliance Product, the actual direct and indirect costs incurred by Distributor or Supplier identifiable to the Alliance Program in support of the procUrement, production, warehousing, . shipment, or after - market service and support ( including manufacturing variances, obsolescence, inventory reserves, non - conforming production runs, warranty, field service, training and complaint handling ) of the finished or intermediate form of such Alliance Product ( a ) invoiced by Distributor to customers who are not Affiliates ( or are Affiliates but are end uses of such Alliance Product ), or ( b ) invoiced by Supplier to Distributor, as determined in accordance with United States generally accepted accounting principles, consistently applied . Direct costs will include . direct labor ( including fringe benefits ), direct materials ( including taxes and duties ), third - Party contract costs, royalties due to Third Parties for intellectual property rights from a Party to the exteIit applicable to Alliance Products, ' handling, transportation and insuran ~ e, the cost of facilities utilized ' for the storage and distribution o : f such Alliance Product, and customs duties, surcharges and other governmental charges incurred in exporting or importing such Alliance Product in final or intermediate form to such customers or Distributor . Indirect costs identifiable to the production effort will include, but not be limited to, items treated as such as indirect labor and materials, fringe benefits, occupancy costs ( including electricity, water, waste disposal, other utilities and property taxes ), depreciation of property, plant and equipment used in the manufacturing process and other costs allocable to the manufacturing, process