Production Cost Sample Clauses
The Production Cost clause defines how the expenses associated with manufacturing or creating goods or services are calculated and allocated between parties. It typically outlines which specific costs are included—such as materials, labor, overhead, and sometimes administrative expenses—and may set guidelines for documentation or approval of these costs. By clearly specifying what constitutes production costs, this clause helps prevent disputes over billing and ensures transparency in financial dealings related to production.
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Production Cost. (indicate if the statements below are true by checking either the "YES" or "NO" box that follows each statement:(3)
(a) The aggregate Foreign Cost (as defined below) associated with the Items is less than 50% of the aggregate Production Cost (as defined below) of such Items. |_| YES |_| NO
(b) The Foreign Cost associated with each of the Items is less than 50% of the Production Cost of each such Item. |_| YES |_| NO
Production Cost. Production cost is generally regarded as those expenditures that are absolutely essential to the production operations. This includes the set of activities, which involves the actual extraction of fluid for commercialization and power generation. Direct production expenses should be allocated to the functional grouping or classification such as the following:
i. Power generation costs such as cost of water (water fees), direct labor, plant overhead, plant depreciation and operation and maintenance costs and other charges which are necessary for the generation and transmission of electricity;
ii. Land and land rights;
iii. Structures and improvements;
iv. Cost of facilities in place used for impounding, collecting, storage, diversion regulation and delivery of water;
v. Cost of installed water turbines (from connection with penstock of flume to tailrace) and generators driven thereby devoted to the production of electricity by water power;
vi. Cost of installed auxiliary generating apparatus, conversion equipment, and equipment used primarily in connection with the control and switching of electric produced by Hydropower and the protection of electric circuits and equipment;
vii. Cost of installed miscellaneous equipment in and about the Generation Facility that is devoted to general station use and is not properly includible in other Hydropower production accounts; and
viii. Cost of roads, railroads, bridges, and trestles used primarily as production facilities; and
ix. Transmission of electricity up to point of metering/grid.
Production Cost. The parties agree that the cost to Oglebay and ONCO for pellet production allocated under Section 5 of the Term S&P Agreement through the Closing Date shall be the Annual Average Cash Cost as defined in Section 6.4(d).
Production Cost. If Customer engages a second production site owned by Benchmark and/or Benchmark Affiliate for the sale of goods and/or manufacturing services, pursuant to Section 1.4 (Additional Site); then upon completion of the production set-up, Customer may provide copies of invoices for the costs of production set-up, and Benchmark will pay such undisputed invoices on Customer’s behalf at the lesser of either fifty percent (50%) of the total production set-up costs, or three hundred thousand dollars (USD $300,000).”
Production Cost. Estimate Upon receipt of the Merrimack Binding Forecast, GTC will prepare an estimate of the costs related to providing the Manufacturing Services Confidential material omitted and filed separately with the Securities and Exchange Commission. Asterisks denote such omissions. necessary to produce the required Merrimack Product. The estimate will include a summary of suite costs, raw material costs, and any third party expenses and will be in accordance with the costs set forth in this Manufacturing Services Agreement. The production cost estimate will be provided to Merrimack for review and approval. An example of the cost estimate is provided in Exhibit 3.
Production Cost. The production cost shall include direct labor costs of production employees, a production supervision charge for supervisory employees, utilities, quality assurance costs incurred pursuant to Section 7(g) hereof, product liability insurance costs incurred pursuant to Section 7(h) hereof, and such other direct manufacturing expenses as are identified in Exhibit III hereto or otherwise approved by the Authorized Representatives, but excluding depreciation.
Production Cost. Production cost is generally regarded as those expenditures that are absolutely essential to the production operations. This includes the set of activities, which involves the utilization of wind energy for commercialization and power generation. Direct production expenses should be allocated to the functional grouping or classification such as the following:
i. Power generation costs such as direct labor, plant overhead, plant depreciation and operation and maintenance costs and other charges which are necessary for the generation and transmission of electricity;
ii. Land, land rights and offshore rights;
iii. Structures and improvements;
iv. Cost of installed wind turbine generators devoted to the production of electricity by Wind Energy Cost of installed wind turbine generators devoted to the production of electricity by Wind Energy;
v. Cost of installed auxiliary generating apparatus, conversion equipment, and equipment used primarily in connection with the control and switching of electric produced by Wind Energy and the protection of electric circuits and equipment;
vi. Cost of installed miscellaneous equipment in and about the Generation Facility that is devoted to general station use and is not properly includible in other Wind Energy production accounts;
vii. Cost of roads, railroads, bridges, and trestles used primarily as production facilities; and
viii. Transmission of electricity up to point of metering/grid.
Production Cost. 17 (c) Termination of Pellet Sales Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . 17 6.5