What is true cost accounting?

Image from 3bl media

True cost accounting (also called Environmental Full Cost Accounting) is a process which tries to identify all costs associated with a product or service. This includes not only the normal costs we would associate with a product or service, bit also social and environmental costs. It attempts include what economists call externalities – something which affects society or the environment  but is not included in the market price of the product. Rather than me continue, here is a short YouTube video which explains the concept in a very clear way.