Article Summary
Mental accounting is a group of cognitive operations that households and individuals use individuals to organise, evaluate, and keep track of business operations. The article summarises the current state of our components of mental knowledge about how people engage in mental accounting. The article is a depth analysis of mental accounting in relation to personal decision-making. The author starts by introducing mental accounting. According to the author, the difference between mental accounting and financial and managerial accounting is the fact that mental accounting involves households and individuals and not organisations.
The other also highlights the process of mental decision-making. The ...