definiens: means A. the fully absorbed cost of the Manufactur ingParty incurred or accrued with respect to each stag e of the manufacturing process performed by such Ma nufacturingParty ( or its Affiliate ), calculated in accordance with the Accounting Standards employed by the appli cable Party on aconsistent basis, including the costs of materials, yield and waste levels, direct labor, QA costs ( in cluding QC testing, in process testing, stability testing, annual produ ct review, reference standards and certificates of analysis, qualityrelease ), equipment maintenance costs, depreciation costs ( but excluding the upfront capital expenditu res therein),services performed by third party vendors, and cost s for utilities ; and- 4 -CONFIDENTIAL B. costs incurred by the Manufacturing Party or for its account which are attributable to suchManufacturing Party ’s central operations ( including engineering, supply chain, regulatory, quality, an d Manufacturingsciences, supervisory or support services and funct ions, occupancy costs, and its payroll, information systems, human relations or purchasing functions, Technology Transfer costs, and regulatory expenses, and which arereasonably allocated to company departments based o n space occupied or headcount or other activity - bas ed method