definiens: or shall mean the fully allocated cost of Manufacturing a Collaboration Product and/or Albuferon expressed on a per unit basis, as such costs are specifically allocated to such Collaboration Product and/or Albuferon and as computed in accordance with the Party 's Accounting Standards as consistently applied through the Party 's organization, including the following : ( a ) Materials cost, which means the price paid for raw material, intennediates, components and finished goods which are purchased from outside vendors, at the price invoiced by such outside vendors, as well as any freight and duty where applicable ; ( b ) Direct labor costs, which means the all9cable employment cost of all personnel engaged in the Manufacture of the Collaboration Product and/or Albuferon including, without limitation, salary and employee benefits within the relevant manufacturing operating unit wherein allocable employment costs shall mean only those direct labor costs applied to ~he actual Manufacture thereof ; ( c ) Other direct costs and factory overhead costs, which means the cost of specific activities that are provided by support functions directly related to manufacturing of a Collaboration Product and/or Albuferon, either on or off - site . Overhead costs include expenses associated with quality assurance testing, quality compliance, stability testing, batch review, equipment maintenance costs, manufacturing utilities, waste removal, storage, transportation, insurance for the factory, its contents or other directly related items, factory management ( including materials management ) and administrative expenses, factory facilities costs including lease and capital costs, environmental engineering and property taxes . These expenses shall be reasonably allocated to the Manufacture of Collaboration Product and/or Albuferon on a pro rata basis based on the Execution Copy 8 allocation methodology appropriate at the Manufacturing site . Such expenses shall exclude costs of any unused manufacturing capacity but may include capacity reserved for the manufacturing Qf Collaboration Product and/~r Albuferon as agreed upon the Parties . Overhead shall not include general corporate activities, including, by way of example only, executive management, investor relations, business developmt?nt, legal affairs, human resources and finance