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Which of the following statements describe the provisioning of components to a subcontractor? Note: There are 3 correct answers

to this question.A.  The provisioning of components can be supported by a one-

step procedure or a two-step procedure.

B.  The inventory of components provided to the subcontractor is

managed as consignment stock.

C.  The inventory of components provided to the subcontractor is

managed at plant level.

D.  The inventory of components provided to the subcontractor is

non-valuated.

E.  The provisioning of components corresponds to a transfer

posting from unrestricted-use stock to subcontracting stock.
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B D E

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