Abstract: The activity-based management is a concept of advanced operation and management for the modern enterprise. On the basis of the activity-based costing, this management runs through the whole operation process of enterprise. It is the result of the reform of management concept and the development of technology. Carrying out activity-based management will be helpful to optimize the process of enterprise and improve the efficiencies of management and operation, so as to strengthen the enterprise's competitiveness. This paper starts with the explanation of the managerial concepts and procedures. By analyzing the conditions of application, combining with the characteristic of enterprise and operation environment in China, this paper clarifies the application prospect of activity-based management in China.