Library / Management Accounting Principles Framework
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Source changed 2026-10-03 11:52:20 UTC · snapshot created 2026-10-03 11:53:41 UTC · last check 2026-10-03 13:50:10 UTC

MA.8:4.4 - Establish the continuation and scale assumptions

Use a model appropriate to the actual relationship. A subscription can provide an observable renewal or termination event. A customer who makes no purchase this month may merely be between purchases; treat their future activity with an adequate model for that setting.

Inspect whether behavior changes with tenure, cohort, channel or proposed scale. A constant rate can be a supplied scenario assumption; an aggregate historical rate does not establish that it applies to every customer or future period.

Check how scale changes acquisition and resource supply. A larger audience may cost more to reach, while a new server, service team or warranty obligation can change the cost pattern. Neither falling unit cost nor rising acquisition cost is a universal law.