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?

ABusiness departments

BSpend categories

CCountries

DIndustries

Show Suggested 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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Jillian

6 months ago

I remember learning about industries in class.

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Gerald

6 months ago

Spend categories? Nah, that's not it.

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Oliva

6 months ago

Same here! They help in industry classification.

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Beth

7 months ago

I feel confident it's D) Industries.

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Lorita

7 months ago

Business departments could be a guess, but industries make more sense.

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Alline

7 months ago

Definitely not countries.

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Valentin

7 months ago

Yeah, I agree. SIC codes classify industries.

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Soledad

7 months ago

I think it's about industries.

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Mindy

7 months ago

I thought they were for business departments?

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Adell

8 months ago

Wait, are they really only four digits?

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Rene

8 months ago

Totally agree, it's all about industries!

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Lindsay

8 months ago

They're used to classify industries.

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Verda

8 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

8 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

8 months ago

I remember studying SIC codes in relation to industries, so I’d lean towards option D.

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Keena

9 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

9 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

9 months ago

Nope, definitely for industries, no doubt!

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Margery

9 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

9 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

10 months ago

D) Industries, easy peasy. I use these codes all the time in my business.

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Becky

10 months ago

Definitely D. I can't imagine classifying countries with a 4-digit code. That's just silly.

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Royal

10 months ago

D) Industries

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Ernie

10 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

11 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

11 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

11 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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