kustannusperustaisen

Kustannusperustaisen is a Finnish term that translates to "cost-based" or "based on costs" in English. It is primarily used in economic and accounting contexts to describe a method of valuation, pricing, or decision-making that relies on the actual costs incurred in producing or acquiring something.

In business, a cost-based pricing strategy, for example, involves setting the selling price of a product or service by calculating its total production costs and then adding a desired profit margin. This approach ensures that all expenses are covered and that the business remains profitable. It contrasts with value-based pricing, where prices are determined by what customers are willing to pay based on the perceived value of the product or service.

In accounting, cost-based valuation refers to recording assets on a company's balance sheet at their original purchase price or manufacturing cost, rather than their current market value. This historical cost principle is a fundamental concept in accounting, providing a verifiable and objective basis for financial reporting. However, it can sometimes lead to financial statements that do not reflect the true current economic worth of assets, especially in periods of inflation or deflation. The term can also appear in discussions of public procurement, where bids might be evaluated based on their cost-effectiveness or how they align with projected expenditures.