The Cognitive Relativism In Accounting Have An Impact On The Quality Of Decisions Made By Decision Makers

Abstract

This literature study aims to discuss how cognitive relativism actually relates in accounting. This research uses a literature study approach. In collecting data, the authors collect data and information related to cognitive relativism through supporting data sourced from research journals and supporting books.  The results of the literature review that has been carried out, it can be explained that the cognitive revolution in social psychology has generated great interest in the structure of knowledge in general. But basically the essence of relativism in accounting is the existence of a cognitive process that is assumed to be able to direct the assessment/decision process. The model shows that judgments and decisions made from accounting phenomena are the result of a set of social cognitive operations that include observing accounting phenomenon information and information schemas that are stored in memory, and then recalled when needed in making judgments and/or decisions.