The factor of knowledge and management is the fourth factor and the fifth factor of tradi- tional production factors after labor,capital and land and has become the most important factors in modern social production.The report of 16th CCCPC held income distribution principle according to labor,capital,technology and management,which shows that the factor of knowledge and manage- ment is the effective form for production factors to participate in income distribution.Accounting management is the core of enterprise management and is the important content of the factor of knowl- edge and management and has become important part of production factors and shows great productiv- ity utility and can construct the basic frame of knowledge management accounting.