DECA Retail Merchandising Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the DECA Retail Merchandising Exam. Utilize flashcards and multiple choice questions, each with detailed hints and explanations. Ensure you're ready to succeed on the exam!

Practice this question and more.

What is the purpose of the North American Industry Classification System (NAICS)?

To classify products by their price ranges
To identify locations of businesses
To categorize businesses based on products and services
To establish a marketing strategy

The correct answer is: To categorize businesses based on products and services

The North American Industry Classification System (NAICS) is designed to categorize businesses based on the products and services they offer. This classification system organizes industries into a standardized format, allowing for easier comparison and analysis of economic data across different sectors. By grouping businesses that engage in similar economic activities, NAICS facilitates a better understanding of industry trends, assists in market research, and informs government policy-making. This categorization is particularly useful for businesses, analysts, and policymakers to interpret industry data accurately and to make informed decisions. Given that the other options do not align with the primary function of NAICS—the focus on product and service characteristics—it's clear why the correct response emphasizes its role in categorizing businesses accordingly.