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Contribution to Book
Chapter 4. True Cost Accounting
Rebuilding the American Economy with True Cost Accounting. (2009)
  • David A Bainbridge
Abstract
The failure of the current U.S. economic system is in a large part a failure of accounting. An accurate understanding of businesses, governments, and resources must include an estimate of all financial, environmental, and social costs. Many of these costs are not currently counted and are described as “external” costs. That does not, however, make them any less real. When moving from financial to environmental to social costs, challenges increase in determining costs. The data needed for complete true cost reporting is rarely available, but as my old mentor, Tod Neubauer, used to say, “it is better to be crudely right, than precisely wrong.” At this moment, the price of virtually all goods is precisely wrong. Agriculture and food are used as examples.
Keywords
  • accounting,
  • true cost,
  • sustainability
Publication Date
Fall 2009
Editor
David A. Bainbridge
Publisher
Marshall Goldsmith School of Management and the Rio Redondo Press
Citation Information
David A Bainbridge. "Chapter 4. True Cost Accounting" San DiegoRebuilding the American Economy with True Cost Accounting. (2009) p. 31 - 39
Available at: http://works.bepress.com/david_a_bainbridge/73/