Zero-based budgeting is a budgeting method in which every expenditure has to be justified from scratch - regardless of the previous year's figures. Instead of simply updating existing budgets, the planning process starts from scratch. The aim is to utilise resources more efficiently and avoid unnecessary costs.
Production costs are all expenses directly associated with the production of a product - these include material costs, production wages and overheads for machinery, energy and administration. They form the basis for the calculation of sales prices and the valuation of inventories in the balance sheet.
The safety margin refers to the distance between the actual value of a company or project and the point at which losses would occur. It serves as a buffer to minimise risks and compensate for financial fluctuations. A larger safety margin increases the likelihood that the company will remain profitable even in difficult times.
Financial leverage refers to the use of borrowed capital to finance investments in order to increase the return on equity. By using borrowed funds, companies can make larger investments than would be possible with pure equity. However, the risk increases, as high debt can also lead to higher financial burdens in the event of losses.
Dynamic pricing is a pricing strategy in which prices for products or services are adjusted in real time based on various factors such as demand, supply, competition and customer behaviour. This method enables companies to maximise their revenue by adapting pricing to market conditions and customer preferences.