Final answer:
Operating efficiency in channel performance refers to the cost to serve, focusing on how well a company uses its resources to deliver products or services while managing associated costs.
Step-by-step explanation:
As an operational component of channel performance, operating efficiency refers to A) cost to serve. This term encompasses how effectively a company manages its resources to provide products or services to its customers. Operating efficiency is measured by analyzing various aspects such as logistics, distribution processes, and overhead costs in relation to the revenue generated. Improving operating efficiency often involves streamlining processes, adopting new technologies, reducing waste, or renegotiating contracts to lower costs.