In SAP S/4HANA Quality Management, catalogs are used to manage predefined codes for qualitative data recording, and selected sets are subsets of code groups used in specific contexts (e.g., inspection plans). Valuation of codes (assigning values like "Accepted" or "Rejected") is mandatory for certain catalog types to ensure consistent processing:

Usage Decisions (A): Catalog type "3" (Usage Decisions) requires valuation in the selected set because the usage decision (UD) determines the stock posting and quality score. In Customizing (SPRO > Quality Management > Quality Inspection > Usage Decision > Define Selected Sets), codes like "A" (Accepted) or "R" (Rejected) must be valuated to trigger specific system actions (e.g., goods movement). This is mandatory for inspection lot completion.

Defect Types (C): Catalog type "9" (Defects) requires valuation in the selected set when used in defect recording (e.g., transaction QS51). Defect codes (e.g., "Scratch," "Dent") need valuation to classify severity or trigger follow-up actions like notifications, making it mandatory in quality processes.

Characteristic Attributes (B): Catalog type "1" (Characteristic Attributes) is used for qualitative MICs. Valuation is optional and depends on the characteristic’s settings (e.g., "Good/Bad"), not mandatory in the selected set itself.

Activities (QM) (D): Catalog type "5" (Activities) is used for tasks or follow-ups in notifications. Valuation is not mandatory in the selected set, as activities are typically descriptive rather than evaluative.

Thus, "Usage decisions" and "Defect types" are the correct answers, as valuation is a required step in their respective processes.References: SAP Help Portal - "Catalogs and Selected Sets in QM"; SAP S/4HANA QM Customizing Guide - "Catalog Management".