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CIPS L5M6 Exam - Topic 1 Question 4 Discussion

Actual exam question for CIPS's L5M6 exam
Question #: 4
Topic #: 1
[All L5M6 Questions]

SIC codes are sets of four-digit codes used to classify what?

Show Suggested Answer Hide Answer
Suggested Answer: D

SIC [Standard Industrial Classification] codes are numerical codes used to classify industries. For example, 1000 = mining, 1500 = construction. These codes help in categorising spend, benchmarking, and market analysis but are not intended for memorisation.

[Ref: CIPS L5M6 Study Guide, p.82 -- SIC codes]


by Chanel at Oct 06, 2025, 12:02 PM

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Oliva
15 hours ago
Same here! They help in industry classification.
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Beth
6 days ago
I feel confident it's D) Industries.
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Lorita
11 days ago
Business departments could be a guess, but industries make more sense.
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Alline
16 days ago
Definitely not countries.
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Valentin
21 days ago
Yeah, I agree. SIC codes classify industries.
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Soledad
26 days ago
I think it's about industries.
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Mindy
1 month ago
I thought they were for business departments?
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Adell
1 month ago
Wait, are they really only four digits?
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Rene
1 month ago
Totally agree, it's all about industries!
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Lindsay
2 months ago
They're used to classify industries.
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Verda
2 months ago
I’m a bit confused; I thought SIC codes might also relate to spend categories, but now I’m not so certain.
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Joseph
2 months ago
I feel like we had a practice question about classification systems, and SIC codes were definitely mentioned. I think it’s about industries.
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Margret
2 months ago
I remember studying SIC codes in relation to industries, so I’d lean towards option D.
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Keena
2 months ago
D) Industries, for sure. Although I do wonder if there's a secret code for the best lunch spots near the office.
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Denny
2 months ago
I think SIC codes are related to industries, but I’m not completely sure if they also cover business departments.
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Dorthy
3 months ago
Nope, definitely for industries, no doubt!
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Margery
3 months ago
Haha, classifying business departments with a 4-digit code? That's a good one. Gotta be D) Industries.
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Rosendo
3 months ago
D) Industries, no doubt about it. I wonder who came up with these codes, though. Seems like a random system.
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Ceola
3 months ago
D) Industries, easy peasy. I use these codes all the time in my business.
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Becky
4 months ago
Definitely D. I can't imagine classifying countries with a 4-digit code. That's just silly.
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Royal
4 months ago
D) Industries
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Ernie
4 months ago
SIC codes... I remember those from my business classes. They're a numerical system used to identify the primary business activity of an establishment. So the answer has to be D) Industries. Easy one!
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Gerardo
4 months ago
Ugh, I totally blanked on what SIC codes are used for. Let me think this through - I know they have to do with business classification, but I'm not sure if it's by department, spend, country, or industry. I'll have to make an educated guess here.
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Alishia
4 months ago
Ah, I know SIC codes! They're used to categorize different types of businesses, right? I'm pretty confident D) Industries is the correct answer.
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Paz
5 months ago
Hmm, I'm not totally sure about this one. SIC codes sound familiar but I can't quite recall what they're used for. I'll have to think this through carefully.
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Alexia
5 months ago
I think this is asking about the purpose of SIC codes, which I remember learning are used to classify industries. I'll go with D) Industries.
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