Operating management is most effective in controlling direct costs and traceable common costs.

Question

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Operating management is responsible for controlling and reducing direct costs, which are expenses that can be directly tied to a specific product or service, as well as traceable common costs, which are indirect costs that can be clearly identified with a particular department or unit. This is achieved through various cost control techniques and continuous improvement initiatives.

Operating Management Is Most Effective in Controlling Direct Costs and Traceable