This study assesses the wood waste generation and its associated true cost which Australian wooden furniture manufacturing companies encounter and are exposed to. The assessment aims to create awareness and facilitate understanding within the wooden furniture manufacturing industry about how much wood is wasted into the production process and how this is translated in financial terms, how wood waste can be reduced, what can and can't be recycled and what services are available to assist businesses with recycling. The results indicate that during processing, 7% up to 40–50% of the annual supply of wooden raw material become residues. The costs connected directly to these wastes represent 2–8% of the turnover.