Define: Supply Cost
Supply Cost means the manufacturer's average direct per unit cost to make a product, excluding intercompany business transfer profits
Supply Cost means the manufacturer's average direct per unit cost to make a product, excluding intercompany business transfer profits.
Relevant Circumstances
- When pricing a product against the cost of producing it
- If transfer pricing or audit rights depend on a defined cost calculation
- Where contractual margin or true-up mechanics rest on per-unit supply cost