Practical sheet | REF: FIC1205 V1

The cumulative balance sheet, the dashboard of a project's economic performance

Author: Jean DAUVERGNE

Publication date: March 10, 2013 | Lire en français

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6. Why the cumulative economic balance approach?

We place ourselves within the scope of Levitt's Law, which posits that every product and/or service is born, grows, lives and must eventually decline and die (see figure below).

This law illustrates the timescale of marketers, whose role is to provide their senior management with the most reliable data possible on saleable quantities and shelf lives.

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