Explanation:

ABC analysis is a way of categorizing the material on the basis of the quantity of consumption and their relative values. Some material might be consumed in lower quantities but their period may be very high. Such materials are kept in group "A". Similarly, some material may be consumed in large quantities but their values may be lower. Such materials are kept in group 'C'. In between these two, some materials may be consumption in moderate quantity with the moderated price. Such materials are kept in group 'B' under ABC analysis very close control is exercised over the material in group 'A' whereas a very little control is exercise is exercised over the material in group 'C'.