Abstract: Mental accounting is a psychological process for individuals, households or corporations to code, organize, evaluate, and keep track of economic activities. It revealed the internal cognitive coding process on people’s economic decision-making. The theoretic production of mental accounting was non-fungibility and the especial mental arithmetic. The productions on application involved price consciousness, behavioral portfolio theory; behavior lifecycle hypothesis and mental budgeting. It would probe into the mental mechanism and cognitive rule of mental accounting based on more study methods in the future

Key words: mental accounting, non-fungibility, value function, editing rule