Which of the following are valid assignments between company code and controlling area? Note: There are 2 correct answers to this question.

A one-to-one (1:1) assignment is valid and common, where a single company code (legal entity) is assigned to a single controlling area (management accounting unit). This simplifies the controlling structure within one legal entity.

A single company code cannot be assigned to multiple controlling areas because a company code needs a single, consistent management accounting framework.

A multiple company codes to one controlling area (n:1) assignment is also valid and often used in group reporting. It allows for cross-company code controlling, meaning that internal allocations and reporting can span multiple legal entities that share the same chart of accounts and fiscal year variant within that single controlling area.

Multiple company codes cannot be assigned to multiple controlling areas in a direct n:n relationship; a company code must belong to only one controlling area at a time.