Standard Cost Sample Clauses

Standard Cost. The Parties shall apply the following process for setting Standard Costs. “Standard Cost” shall be defined as the cost for components and materials based on supplier selling prices as mutually agreed between the Parties. Standard Costs shall be set for all Materials on a Quarterly basis. Standard Costs shall be fixed for each Quarter and shall be adjusted in each subsequent Quarter. Flextronics shall propose updated Standard Costs to Customer in the first week of the last month of each Quarter which will be calculated as an average of actual open purchase orders with suppliers for the subsequent forty-five (45)-day period and be applied to the subsequent Quarter. Standard Costs for each Quarter shall be mutually agreed between the Parties during the second week of the last month in the Quarter. Product pricing for the next Quarter shall be based on the new Standard Costs and shall become effective on the first day of the Quarter. In cases where the actual purchase price of any Material exceeds the Standard Cost by more than US$150 during the Quarter, Flextronics shall contact Customer for written approval prior to the purchase of any such Material. Customer shall respond to such purchase price variance (PPV) requests within two (2) business days. Customer shall be deemed to have given its approval unless it delivers Flextronics a clear written advise to the contrary within said period. Flextronics is hereby granted a waiver from requesting written approval if the variant per order line is less than US$150.

Standard Cost. The physical inventory will be extended at the standard costs effective January 1, 1997. Variances. Purchase price (accounts 710, 720 and 730) and raw material usage and direct labor (accounts 715, 725 and 735) variances will reflect the normal monthly deferral and subsequent amortization at the percentage of cost of sales to WIP and Finished Goods inventory. This FIFO (first-in; first-out) method does not appear to be distorted by seasonal trends, is consistent with year-end and provides a reasonable estimate of actual FIFO costs; however, to the extent it does not, an adjustment will be made such that the amount will be substantially the same as actual FIFO costs. Overhead Capitalized. Overhead will not be capitalized on a rolling FIFO basis. The under/over absorbed overhead (versus the January 1, 1997 standards) for the 12-month period preceding the Closing Date will be converted to a percentage (under/over absorbed divided by overhead component of production) which will be used to adjust the overhead component of inventory at standard. The calculation will consider annual plant shut-down costs. This method of overhead capitalization adjusts inventory so that the result approximates FIFO cost; however, to the extent it does not, an adjustment will be made such that the amount will be substantially the same as actual FIFO costs. The September 27, 1997 over applied balance is approximately 11% representing the variance for October 1996 through September 1997. (Note, this will be updated at Closing.)

Standard Cost. “Standard Cost” means Nautilus’s standard cost for the items listed in Table 2.3A (determined in accordance with GAAP, before any allowances). Buyer and Nautilus have agreed on the Standard Cost of the items of Inventory listed on Table 2.3A.

Standard Cost. Standard Cost" means the standard cost of performing Services with respect to a component or Product, as set forth in Adaptec's SAP system, at the Separation Date or such later date as a Service Fee with respect to a Product may be determined in accordance with Article 4.

Standard Cost. Standard Cost as used by Seller in the compiling the financial information set forth in Schedule 3.05 above, or that may be used in the valuation of any of the Purchased Assets under this agreement, is computed in accordance with Generally Accepted Accounting Principals, consistently applied.