Controls should be economical

Controls must be worth their cost, but will vary with the importance of the activity, the size of the operation etc. Small companies will of course not afford the extensive control systems of large companies.

Economy can be achieved if managers select only critical points for control i.e. controls must be tailored to the job and to the size of the firm. Controls should be able to achieve the principle of efficiency of controls i.e. control system or techniques and approaches are efficient when they detect and illuminate the causes of actual or potential deviations from plans with the minimum of costs or other unfavourable consequences.