definiens: means for the Product 1 M fuJi ) ', Uocated matlufacturing cost determined to IlccordMce \\oith U.S. genendJy accepted accounting principles ( GA.AP ) which includes and is limited to : I. direcllllOOr ( salaries . wages and employee benefits ) ; 2 . direct materials ( dowmenled ) ; 3 . actual and diree ' operating costs of building and equipment used only in CDMI)Ct1on wjth the m : mufa ~ ture of the Product ; 4 . allocated depreciation and rcpainl and maintenance ; S. jn - process and produc : t testing ; 6 . an allocation of overhead costa incurred in CODIlection with the manufacturing ofProduot including : raw material supply and manufacturing administration and maualement ; supply and material management, storasc and handling ; and monufactwing and empJoyee'b'ainirtg ; 7 . royalties paid to third parties ; and 8, no charges ( or idle capacity or undc : rutiliud faoilities or personnel shall be included in the manufacturing cost