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 (ISO).
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 statement that best describes the North American Industry Classification System (NAICS) is that it groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies. The NAICS is a classification system used by the United States, Mexico, and Canada to categorize businesses and industries based on their economic activity. It replaced the Standard Industrial Classification (SIC) system in 1997 and is currently in use. The NAICS allows comparability across countries and accurately measures new and emerging industries. Its industry classifications are consistent with the International Standards Organization (ISO). The NAICS uses a six-digit code system, not a five-digit code system as mentioned in choice E.

Which of the Following Statements About the North American Industry