NAICS stands for what?

NAICS stands for what?

• A. North American Industrial Classification System
• B. North American Industry Classification System
• C. North American Industrial Classification Standard
• D. North American Industrial Code System

Answer: (A)

The main idea here is the exact official name of the standardized framework used to classify businesses for economic statistics across North America. The correct expansion is North American Industrial Classification System. This name reflects a comprehensive framework (a system) for grouping businesses by the type of economic activity they’re engaged in (industrial classification) across the U.S., Canada, and Mexico, so that data can be collected, compared, and analyzed consistently across borders. It replaced the older SIC system and uses a hierarchical coding scheme to identify sectors and subsectors. The other options mix up key words: using Industry instead of Industrial changes the meaning to focus on the sector word rather than the classification framework; Standard instead of System implies a different kind of designation; Code System adds an extra descriptor that isn’t part of the formal name.

The main idea here is the exact official name of the standardized framework used to classify businesses for economic statistics across North America. The correct expansion is North American Industrial Classification System. This name reflects a comprehensive framework (a system) for grouping businesses by the type of economic activity they’re engaged in (industrial classification) across the U.S., Canada, and Mexico, so that data can be collected, compared, and analyzed consistently across borders. It replaced the older SIC system and uses a hierarchical coding scheme to identify sectors and subsectors.

The other options mix up key words: using Industry instead of Industrial changes the meaning to focus on the sector word rather than the classification framework; Standard instead of System implies a different kind of designation; Code System adds an extra descriptor that isn’t part of the formal name.