ABB
Abbreviation for activity-based budgeting.
ABC
Abbreviation for activity-based cost accounting.
(ABC)
ABC analysis also ABC classification
Syn: ABC classification.
ABC classification
The classification of a group of items in decreasing order of...
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ABB
Abbreviation for activity-based budgeting.
ABC
Abbreviation for activity-based cost accounting.
(ABC)
ABC analysis also ABC classification
Syn: ABC classification.
ABC classification
The classification of a group of items in decreasing order of annual dollar volume (price multiplied by projected volume) or other
criteria.
This array is then split into three classes, called A, B, and C.
The A group usually represents 10% to 20% by number of
items and 50% to 70% by projected dollar volume.
The next grouping, B, usually represents about 20% of the items and about
20% of the dollar volume.
The C class contains 60% to 70% of the items and represents about 10% to 30% of the dollar volume.
The ABC principle states that effort and money can be saved through applying looser controls to the low-dollar-volume class items
than will be applied to high-dollar-volume class items.
The ABC principle is applicable to inventories, purchasing, sales, and so on.
Syn: ABC analysis, distributio
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