When Referencing NAICS Codes, Marketers Should Know That

question 80

Multiple Choice

When referencing NAICS codes, marketers should know that:

• A) two-digit industries are subindustries of the three-digit industries.
• B) two-digit codes offer the broadest categorization of industries.
• C) categories become less detailed as you move to codes with more digits.
• D) the international version of the NAICS system is the most accurate and reliable.
• E) NAICS codes provide detailed information about the apparel industry only.

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Definitions:

Gross Profit Method

A technique used for estimating inventory and cost of goods sold, calculated by applying a gross profit percentage to sales.

Retail Inventory Method

An accounting method used by retailers to estimate inventory value by converting retail prices to cost prices.

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.