Fully Absorbed Cost definition

Fully Absorbed Cost means Ironwood’s costs to Manufacture the Development Material and Licensed Compound, or Astellas’s cost to Manufacture and supply Product, as applicable, consisting of Direct Costs and Indirect Costs, all determined in accordance with United States generally accepted accounting principles, or GAAP, as applicable, as in effect from time to time and consistently applied.

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Fully Absorbed Cost has the meaning set forth on EXHIBIT 2.3 hereto.

Fully Absorbed Cost means with respect to AHP's manufacture of the Product, the sum of AHP's standard unit costs of raw materials, direct labor and allocated overhead. The calculation of direct labor and allocated overhead costs will be consistent with AHP's then current cost accounting policies and procedures and in accordance with generally accepted accounting procedures.

Examples of Fully Absorbed Cost in a sentence

• The Manufacturing Party shall be entitled to charge Kallikrein LLC an amount equal to its Fully Absorbed Cost of Goods for such Collaboration Products.

• Upon completion of the audit, the accounting firm will provide both the Auditing Party and the Audited Party a written report disclosing whether the reports submitted by Astellas, or the Fully Absorbed Cost reported by Ironwood and the resulting Transfer Price payments and royalty credits, as applicable, are correct or incorrect and the specific details concerning any discrepancies.

• During the Term of this Agreement, Astellas will keep and maintain accurate and complete records regarding Net Sales during the three preceding Years and Ironwood will keep and maintain accurate and complete records regarding the Fully Absorbed Cost covering the three preceding Years .

• Once the Parties have each been fully reimbursed for the Fully Absorbed Cost of Goods, Net Revenue next will be allocated between the Parties to reimburse them for External Sales & Marketing Expenses incurred by the Parties in such calendar year.

• The Fully Absorbed Cost of Goods for such Collaboration Products shall be deemed Development Costs and reimbursed in accordance with the terms of this Agreement.

• Net Revenue first will be allocated between the Parties to reimburse them for the Fully Absorbed Cost of Goods incurred by the Parties in such calendar year.

• If Ionis uses a Third Party CMO, as permitted by this Agreement, Fully Absorbed Cost of Goods will mean the amounts paid to the CMO.

• Once the Parties have each been fully reimbursed for the Fully Absorbed Cost of Goods, External Sales & Marketing Expenses, Internal Sales & Marketing Expenses and External Development Expenses, Net Revenue next will be allocated between the parties to compensate them for Internal Development Expenses incurred by the Parties in such calendar year.

• Notwithstanding any provision of this Agreement to the contrary, the Parties acknowledge and agree that BioMarin/Genzyme LLC shall not bear any costs relating to the construction of manufacturing facilities for a Collaboration Product (other than through normal depreciation and amortization included in Fully Absorbed Cost of Goods).

• Once the Parties have each been fully reimbursed for the Fully Absorbed Cost of Goods, External Sales & Marketing Expenses and Internal Sales & Marketing Expenses, Net Revenue next will be [**] = Portions of this exhibit have been omitted pursuant to a confidential treatment request.

More Definitions of Fully Absorbed Cost

Fully Absorbed Cost means standard cost calculated as [***].

Fully Absorbed Cost means Ironwood’s costs to Manufacture the Development Material and Licensed Compound, as applicable, consisting of [**], all determined in accordance with GAAP. [**] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

Fully Absorbed Cost means: ------------------- (a) Costs of third party manufacturers, utilities, materials, indirect materials and supplies used in the manufacturing and packaging of Product; (b) wages of those employees directly employed in the manufacturing and packaging of Product; (c) wages of employees directly employed in quality control, materials management or related functions which are applicable to the manufacturing and packaging of Product, and the salaries of the supervisors of said functions (or an appropriate portion of such wages and salaries if such personnel are not employed exclusively in said manufacture); (d) that portion of payroll taxes, benefits, social security payments, vacation and bonus payments and other employee costs allocable to the wages and salaries included within the provisions of subparagraphs (b) and (c) above; (e) that portion of manufacturing overhead and expenses (excluding general and administrative expenses) apportioned in accordance with generally accepted accounting principles to the manufacture and packaging of Product; and (f) costs of transportation of the Product to ▇▇▇▇▇▇▇' warehouse.

Fully Absorbed Cost means all fixed and variable costs, including overhead, of Product in accordance with Generally Accepted Accounting Principles in effect in the United States consistently applied.