Abstract -- Accounting plays an important role in most firms, and its main function is to make information
available to various decision-makers. How this information is used depends, among other factors, on the
cognitive qualities of those who participate in the management process. Data from the accounts is interpreted
on a basis of the existing level of knowledge and applied to a problem-solving process in which goals and
conceptions about causal relations are central. Moreover, the self-efficacy of the participants must be assumed
to influence both problem-solving and implementation. The object of this article is to discuss the function of
accounting in the management process from a cognitive point of view, and to indicate important areas for
further research. © 1997 Elsevier Science Ltd. All rights reserved