My comment was badly worded. Here's the correct version.
In permutation language, $\binom{n}{k_1,k_2,\ldots,k_\ell}$ is the number of ways of arranging $n$ letters, with $k_1$ copies of letter $1,$ $k_2$ copies of letter $2$, $k_3$ copies of letter $3,$ and so on. For example, ABABC is one of the $\binom{5}{2,2,1}=\frac{5!}{2!\,2!\,1!}=30$ ways to arrange two As, two Bs, and one C.
There are two ways to think about this:
- Arrange $n$ letters in $n!$ ways. Then, since permutations of repeated letters amongst themselves do not change the arrangement, divide by the number of such permutations.
- An arrangement can be formed by regarding the letters as being placed into $n$ slots. Choose which $k_1$ of the $n$ slots are to contain letter $1$; then choose which $k_2$ of the $n-k_1$ remaining slots are to contain letter $2$; then choose which $k_3$ of the $n-k_1-k_2$ remaining slots are to contain letter $3$; and so on. There are $\binom{n}{k_1}\binom{n-k_1}{k_2}\binom{n-k_1-k_2}{k_3}\ldots$ ways to do this.
If you write out the binomial coefficients appearing in Method 2, you will find that the product telescopes (i.e. there is a systematic cancelation between one factor and the next), leaving the same result as Method 1.
Addendum in response to query in the comments:
A telescoping sum is one where there is cancelation between one term and the next, leading to a big simplification. They come up often in the study of sequences. An example would be
$$\begin{aligned}\sum_{i=1}^5\frac{1}{i(i+1)}&=\sum_{i=1}^5\left[\frac{1}{i}-\frac{1}{i+1}\right]\\
&=(1/1-1/2)+(1/2-1/3)+(1/3-1/4)+(1/4-1/5)+(1/5-1/6)\\
&=1/1+(-1/2+1/2)+(-1/3+1/3)+(-1/4+1/4)+(-1/5+1/5)-1/6\\
&=1/1-1/6.\end{aligned}
$$
One can also have telescoping products. Let's actually try writing this one out:
$$
\begin{aligned}&\binom{n}{k_1}\binom{n-k_1}{k_2}\binom{n-k_1-k_2}{k_3}\ldots\binom{n-k_1-\ldots-k_{\ell-1}}{k_\ell}\\
&\quad=\frac{n!}{k_1!\,(n-k_1)!}\frac{(n-k_1)!}{k_2!\,(n-k_1-k_2)!}\frac{(n-k_1-k_2)!}{k_3!\,(n-k_1-k_2-k_3)!}\ldots\frac{(n-k_1-\ldots-k_{\ell-1})!}{k_\ell!\,(n-k_1-\ldots-k_\ell)!}\\
&\quad=\frac{1}{k_1!\,k_2!\,\ldots\,k_\ell!}\cdot\frac{n!}{(n-k_1)!}\frac{(n-k_1)!}{(n-k_1-k_2)!}\frac{(n-k_1-k_2)!}{(n-k_1-k_2-k_3)!}\ldots\frac{(n-k_1-\ldots-k_{\ell-1})!}{(n-k_1-\ldots-k_\ell)!}\\
&\quad=\frac{1}{k_1!\,k_2!\,\ldots\,k_\ell!}\cdot\frac{n!}{(n-k_1-\ldots-k_\ell)!}\\
&\quad=\frac{1}{k_1!\,k_2!\,\ldots\,k_\ell!}\cdot\frac{n!}{0!}.\end{aligned}
$$