The SIC codes list includes the collection, presentation and analysis of data covering all economic activities, according to SIC Code.com. While there are 11 divisions in the SIC system, every company has a private SIC code.
SIC codes can have up to four digits and are used to create Gross Business Income reports, Statewide Taxable Retail Sales reports and Local/Sales Use reports, states the Department of Revenue Washington State. These codes group together firms creating informative and useful information.
The first two digits of the SIC codes identify the major industry groups, notes SIC Codes.com. The third digit indicates the industry group, and the fourth digit identifies specific industries. A company's specific SIC code indicates its primary line of business. The highest revenue for that company at a specific location during the past year determines the SIC code. The Quarterly Business Review uses SIC codes to compile standardized economic classification and data, explains the Department of Revenue Washington State.
The classification SIC code was developed to promote uniformity and comparability of statistical data of all business establishments, states SIC Code.com. This code information is collected by the federal government, state agencies and private organizations. Other uses for SIC codes include identifying customers and competitors, eligibility for government contracts and use on various applications and forms.