what is the mean of ABC analysis ?

Answer Posted / r.chandrasekaran

Activity Based Costing is called ABC analysis. Cost of each activity on a particular product will be maintained separately to know the cost of production of the particular product, when a company has multi product mix production. For example, sales and administration expenses will normally be maintained in general. If keep analysing the cost of each activity for each product, then the real cost of production will be known under this ABC analysis.

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