Standard Industrial Classification


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Related to Standard Industrial Classification: North American Industry Classification System

Standard Industrial Classification (SIC)

A code system that designates a unique business activity classified by industry.

Standard Industrial Classification

A system of four digit codes used in business to classify the industry to which a company belongs. The SIC was created by the U.S. government in 1937 to facilitate communication within and between businesses and industries. For the most part, the SIC was replaced by the six digit NAICS in 1997, but the SEC still uses the SIC. For example, an oil and gas exploration company might file with the SEC under the code 1382.

Standard Industrial Classification (SIC)

a system which codifies and measures groups of economic activity at various levels of aggregation and disaggregation. In the UK, the Standard Industrial Classification comprises 10 major divisions, 60 classes, 222 groups and 334 activities. Activities, or their equivalent ‘industries’ (see INDUSTRY), are derived on the basis of their supply characteristics, in particular the use of common raw materials and processes of manufacture. Such a classification provides a useful source of information on industry structure and statistical details of employment, output and investment by the industrial sector. However, for purposes of MARKETING strategy, SIC data usually needs to be reinterpreted in order to provide more meaningful specifications of MARKETS, defined in terms of groups of products which are regarded by buyers as close substitute products. To illustrate, glass jars and metal cans are assigned to different industries by the SIC (Division 2, Activity ‘glass containers’, Division 3 ‘packaging products of metal’, respectively), but would be regarded by a user of packaging materials such as a coffee manufacturer as substitute products. See STRUCTURE OF INDUSTRY.

standard industrial classification

see INDUSTRIAL CLASSIFICATION.
References in periodicals archive ?
The venerable Standard Industrial Classification system itself is being overtaken by structural changes of a different sort.
Also, the principal business activity codes on the new form are based on the new North American Industry Classification System, which has replaced the Standard Industrial Classification system.
For the first time, the new North American Industry Classification System (NAICS) also is given for each market sector along with the old Standard Industrial Classification (SIC).
The Standard Industrial Classification (SIC) Manual, prepared by the Executive Office of the President, Office of Management and Budget, provides the standardized codes used by the U.S.
General characteristics of the small business population as covered by the survey are measured by firm size.and age, organizational form, standard industrial classification, location and number of offices, management, export sales, and the race, ethnicity, and sex of the firm's majority owners (table 1).
Clients can be targeted by size, standard industrial classification (SIC) code, location or some other criterion.
A proposed revenue procedure based on the two-digit Standard Industrial Classification ("SIC") code system was published as an appendix to the proposed regulations.
The classification of service industries follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
In 1997, the Office of Management and Budget (OMB) announced the adoption of a new standardized system for classifying industries--the North American Industry Classification System (NAICS).(1) NAICS will replace the Standard Industrial Classification (SIC) system and thus represents one of the most profound changes for government statistical programs since the 1930s.(2) Although the current system has been revised and updated periodically, the basic structure has remained intact since its inception.
Taxpayers had to allocate income into specified product categories that are based on a two-digit Standard Industrial Classification System (SIC), and then match the related research expenses with that income.
These changes were made to conform with the nomenclature used in the 1987 Standard Industrial Classification. For foreign direct investment in the United States, the substance of these changes had already been reflected in the detailed estimates of the historical-cost position and related capital and income flows, beginning with the 1987 benchmark survey of foreign direct investment in the United States.
Business-Facts On-CD will provide business counts for primary or secondary Standard Industrial Classification (SIC) codes, sales volume ranges, employment size ranges, as well as daytime population counts.

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