Which of the Following Statements About the North American Industry

question 33

Multiple Choice

Which of the following statements about the North American Industry Classification System (NAICS) is false?

• A)the first two digits represent sectors
• B)the third digit designates subsectors
• C)the fourth digit designates industry groups
• D)the fifth digit designates company name.

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Definitions:

Inventory Profits

The increase in net income that occurs when a company sells its inventory for more than it cost to produce or purchase.

Lower Of Cost Or Market

An accounting principle requiring companies to value inventory at the lower of its historical cost or current market price.

Inventory Valuation

The cost associated with an entity's inventory at the end of a reporting period, calculated using methods like FIFO, LIFO, or Weighted Average.

Inventory Control

The supervision of non-capitalized assets (inventory) and stock items, particularly managing the quantity of stock on hand to prevent stockouts or excessive oversupply.