Human choice behavior takes account of internal decision costs: people show a tendency to avoid making decisions in ways that are computationally demanding and subjectively effortful. Here, we investigate neural processes underlying the registration of decision costs. We report two functional MRI experiments that implicate lateral prefrontal cortex (LPFC) in this function. In Experiment 1, LPFC activity correlated positively with a self-report measure of costs as this measure varied over blocks of simple decisions. In Experiment 2, LPFC activity also correlated with individual differences in effort-based choice, taking on higher levels in subjects with a strong tendency to avoid cognitively demanding decisions. These relationships persisted even when effects of reaction time and error were partialled out, linking LPFC activity to subjectively experienced costs and not merely to response accuracy or time on task. In contrast to LPFC, dorsomedial frontal cortex--an area widely implicated in performance monitoring--showed no relationship to decision costs independent of overt performance. Previous work has implicated LPFC in executive control. Our results thus imply that costs may be registered based on the degree to which control mechanisms are recruited during decision-making.