Which of the following statements about the North American Industry Classification System (NAICS)is most accurate?
A) After being used for more than 50 years, the NAICS was replaced by the Standard Industrial Classification (SIC) system.
B) The NAICS permits comparability across countries but does not accurately measure new or emerging industries.
C) One drawback to the NAICS is that its industry classifications are inconsistent with the International Standards Organization.
D) The NAICS groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies.
E) The NAICS is a five-digit code that allows comparison of industries even when information is limited.

Question

Quizplus · Accepted Answer

The North American Industry Classification System (NAICS) groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies. The NAICS system has not been replaced by the Standard Industrial Classification (SIC) system and is still in use. The NAICS allows comparability across countries and accurately measures new or emerging industries. Its industry classifications are consistent with the International Standards Organization. The NAICS is a hierarchical system and consists of six digits, with the first two digits representing the sector, and the remaining digits representing subsectors, industries, and sub-industries.

Which of the Following Statements About the North American Industry