Which of the following statements about NAICS codes is false?
A) Three-digit NAICS codes are very useful to the retail analyst.
B) In almost all instances, the NAICS code reflects the type of merchandise the retailer sells.
C) Four-digit NAICS codes provide much more information on the structure of retail competition than three-digit NAICS codes.
D) The U.S. Bureau of Census classifies all retailers using three-digit NAICS codes.
E) The major portion of a retailer's competition comes from other retailers in its NAICS category.

Question

Quizplus · Accepted Answer

Three-digit NAICS codes are not specific enough for retail analysis, as they cover broad industries rather than specific types of merchandise. Retail analysts would typically use four- or five-digit codes for more precise information.

Which of the Following Statements About NAICS Codes Is False