An Allocation Unit, also called a cluster, is a is the smallest unit of storage that the file system of the operating system can manage. That means if a 1KB file is stored in a system with a 4KB cluster, the 1KB file takes up 4KB of disk space even though the 1KB file is much smaller in size. As Allocation is the process of assigning particular areas of the disk to particular data or instructions, an Allocation Unit is a group of sectors on the disk that can be reserved for the use of a particular file.
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