The ABC analysis is based on Pareto's law.

Name: The ABC analysis is based on Pareto's law.
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The ABC analysis is based on Pareto's law, also known as the 80/20 rule, which states that roughly 80% of the effects come from 20% of the causes. This principle is widely used in management and economics, and is the foundation for the ABC analysis, which categorizes items based on their importance and value.

The ABC Analysis Is Based on Pareto's Law