definiens: with respect to a Collaboration Product shall mean ( a ) the variable costs and fixed costs incurred by a Party associated with the manufacture ( inclusive of finishing processes ) of batches of such Collaboration Product or ( b ) if such Collaboration Product is not manufactured by the Parties, the transfer price for batches of such Collaboration Product purchased from Third Party manufacturers . For purposes of this Section 1.15, shall be deemed to be the cost of labor, raw materials, supplies and other resources directly consumed in the manufacture of batches of such Collaboration Product, including quality control and quality assura nce . For purposes of this Section 1.16, shall be deemed to be the cost of facilities, utilities, insurance, facility and equipment depreciation and other fixed costs directly related to the manufacture of batches of such Collaboration Product, as well as royalties payable to Third Parties in connection with the manufacture, use or sale of a Collaboration Product . Fixed costs shall be allocated to such Collaboration Product based upon the proportion of such costs directly attributable to suppor t of the manufacturing process for such Collaboration Product . If a facility is used to manufacture Collaboration Products and products for other programs of either [COMPANY] or [COMPANY], fixed costs shall be allocated in proportion to the use of such facility f or the manufacture of Collaboration Products and products for such other programs . Fully Absorbed Cost of Goods shall exclude all costs otherwise reimbursed pursuant to this Agreement . In the event that either [COMPANY] or [COMPANY] subcontracts with the other Pa rty to perform any work on its behalf in connection with the manufacturing responsibilities assigned to [COMPANY] or [COMPANY], respectively, pursuant to Section 7.3.1 hereof, [COMPANY] and [COMPANY] ( i ) shall each directly charge Kallikrein LLC their respective Fully A bsorbed Cost of Goods and ( ii ) shall not include any part of the other Party 's Fully Absorbed Cost of Goods in the amount so charged to Kallikrein LLC . Except as otherwise provided in this Agreement, all cost determinations made hereunder shall be made in accordance with GAAP