Assigning an application to a category
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To assign an application to a category, right click on the application, then choose "Assign to Category" from the menu, and click on the appropriate category, or choose "New Category" and type a category name.

To remove the category association from an application, expand the category, right click on the application, then choose "Assign to Category" from the menu, and click on "Clear Category" from the menu that appears.  Similarly, an assigned application can be moved to a different category.