Hi Bhavin,
I'd assume you are talking about valuated vs non-valuated project stock.
1. It depends on business requirements, in my opinion valuated project stock gives better visibility and more accurate costing, especially for long-lead high-value items.
2. Materials will be reflected with statistical balance sheet items (cost elements type 90), and that will count towards your budget even before consumption.
3. Do not see this as a question.
4. You are settling only cost, not a balance sheet, when your stock is not restricted stock it is valuated as unrestricted stock, but you cannot see that in PS info system.
Regards,
Paulo