True Cost Accounting is a new type of bookkeeping that does not just look at the usual financial values within a company, but also calculates the impacts on natural and social capital; or said differently, it calculates the impacts on the natural and social environment in which the company operates. These impacts are calculated in monetary terms, so the amounts can be incorporated in the True Cost books. The "hidden costs" of production, which were externalised in the old system, are made visible and internalised.
