Indirect Production Costs definition
Indirect Production Costs means the total of all allocations of Indirect Production Costs for each production facility and support function involved in the provision of Transcription Services to MedQuist. The allocation of said costs shall be determined for each facility in India at which transcription services are performed by CBay for MedQuist by multiplying (i) the sum of (x) indirect personnel costs (i.e., wages, bonuses, fringe benefits and other employee related costs) for employees indirectly involved in the provision of Transcription Services to MedQuist pursuant to this Agreement (i.e., second level quality assurance, supervisory, management and other production related personnel) at such facility, and (y) other indirect production expenses (i.e., rental expenses, utility expenses, customer penalties and other expenses incurred indirectly as a result of and related to the provision of Transcription Services to MedQuist pursuant to this Agreement) at such facility by (ii) a ratio, the numerator of which is the Volume of Transcription Services performed for MedQuist hereunder at such facility and the denominator of which is CBay’s total volume of Transcription Services performed at such facility. The allocation of Indirect Production Costs other than those at the production facility shall be based upon a ratio of the Volume of Transcription Services performed for MedQuist hereunder to the total volume of all Transcription Services (or such other volume as may be appropriate for that specific support function). For purposes hereof, Indirect Production Costs shall mean solely those costs expended in India and included in the general ledger accounts listed on Schedule H hereto.
Indirect Production Costs means compensation and benefits, transportation and logistics, vehicle costs, purchased services, tools and materials, employee education and welfare, telecoms, maintenance, utilities, supplies, information technology and office equipment lease, facility lease and insurance, in each case in connection with the Business. Buyer’s allocations for R&D, S&M, and G&A will be done in a manner similar to Seller’s allocations for such costs as of the date of the Agreement; provided, however, that the proportion of Indirect Production Cost to Average Annual Cost per Module will not exceed Seller’s allocations of Indirect Production Cost as of the date of the Agreement.
Examples of Indirect Production Costs in a sentence
CBay commits to use its best efforts to reduce its Direct Production Costs and Indirect Production Costs through improved productivity, better use of technology, and other methods as it, in it sole discretion but in consultation with the Executive Committee, deems appropriate so as to strive to optimize its Contribution Margin and as such to maximize the profit sharing payments to MedQuist under Section 3.4(i).
CBay commits to use its best efforts to provide complete financial and operational data about the Transcription Services provided to the Company, including but not limited to, monthly financial statements showing Revenues, Direct Production Costs, Indirect Production Costs, Contribution Margin, other expenses and productivity.