Which statement correctly expands the acronym NAICS?

• A. North American Industry Classification System
• B. North American Industrial Classification Standards
• C. National American Industry Classification System
• D. North American Industry Classification Service

Answer: (A)

NAICS expands to North American Industry Classification System. It’s the standardized framework that groups businesses by the type of economic activity they engage in, so data can be compared consistently across North America. The term “Industry” correctly reflects the focus on economic sectors, while “Classification” describes how establishments are organized into groups, and “System” signals a unified method used across the region. The geographic part is “North American,” not “National,” and the correct title is “System,” not “Standards” or “Service,” which is why the other options don’t fit. This expansion is used by government agencies and researchers to analyze and compare economic activity across sectors and countries such as the U.S., Canada, and Mexico.