There is a score of ways in which abrasive machining can be advantageous, either singly or in combination. These can be summarized under four major headings: high rate of stock removal; reduction in amount of stock removal; reduction in material handling cost; improvement of product quality. These all involve cost savings. Although one or more of the foregoing factors are present when abrasive machining is selected over some other process, it is only occasionally that such detailed information is available. Frequently the economic advantage of abrasive machining is stated in general terms, and sometimes it can only be inferred from the fact that an abrasive-machining operation is being used by an industrial organization known to analyse manufacturing costs very stringently. This article discusses power consumption sources of cost reduction, and others.