Its a method used to find faults. In my opinion is faster and uses less arithmetic than the per unit method; therefore, there is less room for mistakes. In addition, a one-line diagram can be transformed and reduced by using blocks (if you want to), so it is visual; I'm a visual person and this helps me.
It can be used to solve three phase faults and phase to ground or phase to phase faults. Hopefully the exam wont be asking for too many phase to phase or phase to ground faults.
Here is a very good paper that many member of this forum have made reference to in other posts.
www.arcadvisor.com/pdf/ShortCircuitABC.pdf