kustannusperusteisesta

Kustannusperusteisesta is a Finnish term that translates to "cost-based" or "based on cost" in English. It refers to a principle or method where decisions, valuations, or calculations are primarily determined by the expenses incurred in producing, acquiring, or maintaining something. This concept is widely applied in various fields, including accounting, economics, and business management.

In accounting, cost-based valuation means that an asset is recorded on the balance sheet at its original purchase price or the cost of its production. This historical cost is generally not adjusted for market fluctuations unless specific accounting standards require it, such as for impairment. This approach provides a verifiable and objective measure of an asset's value.

In economics, cost-based pricing strategies involve setting the price of a product or service by adding a markup to the total cost of production. This ensures that all expenses are covered and a profit margin is achieved. This contrasts with value-based pricing, where prices are set according to the perceived value to the customer.

In project management, a cost-based approach to budgeting and control means that all financial planning and monitoring revolve around the expected and actual costs of project activities. This helps in managing resources efficiently and keeping the project within its financial limits. The term emphasizes the centrality of expenditure in the decision-making process.