Kustannustanssi

Kustannustanssi is a Finnish term used in business and economic discourse to describe the interaction and fluctuations of costs within production and pricing processes. The compound derives from kustannus meaning “cost” and tanssi meaning “dance,” used metaphorically to convey how costs move in relation to each other and to activity levels.

In usage, kustannustanssi refers to observed patterns where certain cost components, such as energy, materials, or labor, change in response to market conditions while others remain relatively stable, producing a “dance” of rising and falling costs across a firm’s cost structure. It is not a formal economic model but a descriptive concept found in journalism, consulting, and managerial discussions, especially in Finland, to illustrate cost pressure and the strategic responses they trigger.

Common discussions around kustannustanssi focus on strategies to dampen or shape the cost dance: improving productivity, investing in automation, renegotiating supplier terms, hedging commodity prices, offshoring or reshoring, and adjusting product mix or pricing. The concept emphasizes that cost management is dynamic and context-dependent, involving both fixed and variable elements.

See also: cost accounting, activity-based costing, cost management, price elasticity.

Note: The term’s prominence is largely regional and informal, without a universal formal definition in economics literature.