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In this paper, a new bit allocation scheme is proposed for MPEG-4 Advanced Audio Coding. Developed from the generalized BFOS (Breiman, Friedman, Olshen, and Stone) algorithm, the new approach considers adaptive adjustment of quantization step size also, except bit-use efficiency. The basic idea behind our scheme is that every modification of scale factor for each band is determined by the ldquobit rate distancerdquo. Simulation results show that the performance of this scheme is significantly better than that of the MPEG-4 AAC Verification Model and the computational complexity is highly reduced compared to BFOS algorithm.