ABC analysis is a managerial accounting method used for classifying objects (such as products, customers, expenses) based on their significance. The essence of the method lies in dividing objects into three categories:

• Category A - High Priority: the most important objects that generate the bulk of revenue, profit, or have another critical value for the organization's activities. Typically, these are 10-20% of the total number of objects, contributing about 70-80% of the effect (the 80/20 rule or Pareto principle).

• Category B - Medium Priority: objects of medium significance that bring a substantial, but smaller portion of revenue or profit compared to category A. These are approximately 30-40% of objects, contributing about 15-25% of the effect.

• Category C - Low Priority: the least significant objects that bring a small part of the revenue or profit. Usually, these are 50-60% of the objects, contributing about 5-10% of the effect.

The goal of ABC analysis is to optimize resource management, for example, by allocating more attention and resources to the inventory of Category A and less to Category C, allowing for a more efficient distribution of the company's efforts and resources. This method is widely used in logistics, inventory management, assortment management, marketing, and other management areas.