definiens: means, with respect to each Product manufactured by a Party, the fully burdened and fai rly allocable costs consistent with U.S. generally accepted accounting principles of the relevant Party and its Affiliates, on a consolidated basis, of manufacturing such Product, including : ( a ) depreciation or amortizatio n of capital expenditures related thereto and a fair charge for direct costs ( including, but not limited to, standard costs and variances from stand ard costs ) ; ( b ) the reasonable cost of any excess or idle capacity not otherwise employed and incurred at a facility of such Party that is comple ted and licensed by the appropriate authorities for production of such Prod uct to the extent that such capacity has been approved by the Parties purs uant to Section 9.4(e ) ; ( c ) normal yield losses which arise under efficient and normal production operation conditions ; ( d ) reasonable costs for proc ess development and improvement following commercialization ; ( e ) indire ct costs ( including, but not limited to, reasonable general and administrati ve costs associated with manufacturing, factory and facilities overhead, qua lity assurance and control, engineering, production administration and Allocable Overhead ) ; ( f ) royalties to Third Parties for technology needed fo r the manufacture of such Product ; and ( g ) costs of testing rejected or retur ned Products . Such costs shall be determined by the relevant Party in accord ance with its internal accounting systems and methodologies and generally accepted accounting principles, as applied on a consistent basis