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Answer Posted / sruthi ramaraju
activity based costing is called ABC analysis , it is also called always better control.
A stands with items that account about 70 to 75 % of total consumption.
for example bitumen , cement all these materials comes main products which are most widely needed in the construction.
B stands with items that account about 15 to 20 % of medium consumption or natural consumption.
for example aggregate and all other that comes with aggregate.
C stands with the items that account only about 5 to 10 % of lowest consumption.
for example sand and so on....
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