Transformation of economic development and activity-based management

How to apply appropriate cost management mode so to obtain a sustainable competitive advantage is an important issue faced by Chinese enterprises. This paper shows the influence of transformation of economic development on enterprises' cost management, analyzes the shortcomings of traditional costing mode; then the paper describes the advantages of activity-based management. The paper focuses on the application of activity-based management in the enterprises in the transformation period of economic development and provides the concrete steps. In the end, the paper shows the special attentions in applying activity-based management.