g The difference between a three-digit North American Industry Classification System (NAICS) industry and a six-digit NAICS industry is that:

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14-01-2021
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g The difference between a three-digit North American Industry Classification System (NAICS) industry and a six-digit NAICS industry is that:

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Answer:

A 3 digit code by NAICS represents the subsector of the type of business in America while a six digit code represents country level national industries.

Explanation:

The NAICS stands for North American Industry Classification. It is a standard used by the various federal statistical agencies to classify business for collecting, analyzing as well as publishing the statistical data which is related to the business economy of the US.

In the code of NAICS, a three digit industry is considered as a sub-industry of the two digit industry. Each of 3 digit code business are further divided into 4,5 or 6 digit code industries.

The six digit code used by NAICS is given to the national industries. It permits the firms to find the codes of their present customers and also helps them to find the code lists for the similar firms.