relies on market mechanisms to regulate prices for certain clearly specified goods and services needed by an organization, thus relieving managers of the need to establish more elaborate controls over costs. In order to use market control, a reasonable level of competition must exist in the relevant goods or service area and requirements must be specified clearly. For example, purchasing departments frequently develop detailed standards or specifications for goods needed by the organization and then initiate a competitive bidding process. Without the specifications and bidding process (or at least alternative sources for the goods or services that can be compared), purchasing agents might have to determine whether particular price quotes are reasonable on the basis of the productive processes involved. Attempting to control costs in this way can involve considerable time and effort.