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externality
(redirected from External costs)

    Also found in: Wikipedia 0.02 sec.

externality

The difference between the social cost or benefit of an economic activity and its private cost or benefit. For example, if a company pollutes the atmosphere but pays nothing to the government or the community for this, then the pollution becomes an externality.



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manufacturers are rising external costs associated with health care, materials and energy, which manufacturers are unable to transfer to product pricing.
Surveyed U.S. manufacturers less bullish for 2006 by Wood & Wood Products
The increase stems largely from a 66% rise in external costs for consulting, software and other vendors and a 58% increase in the fees charged by external auditors.
Under the gun: Sarbanes-Oxley compliance requires significantly more ... by Barrett, Eleanor / Best's Review
The CEOs of those companies "need to sound off in all available forums about the significant internal and external costs involved and the relatively meager benefits and seek redress," said Bemard G.
Backlash over regulatory restraint by Chief Executive (U.S.)
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