ABC analysis method was initiated by Italian economist Masutto. 1879, when studying the distribution of individuals, barreto found that the income of a few people accounted for most of the total population income, while the income of most people only accounted for a small part. He showed this relationship with a diagram, which is the famous barreto diagram. The core idea of this analysis method is to distinguish the primary and secondary factors that determine a thing. Identify several key factors that play a decisive role in things and many secondary factors that have little influence on things. Later, barreto method was continuously applied to all aspects of management. 195 1 year, which was applied to inventory management by management scientist Dyke and named ABC method. 195 1 year-1956, Zhu Lan introduced ABC method into quality management to analyze quality problems, which was called pareto chart. 1963, Drucker extended this method to all social phenomena, making activity-based costing a widely used management method for enterprises to improve efficiency.