Activity based costing is a cost based on activity calculation method, refers to the work as the indirect costs, by confirming, calculating resource drivers, collection resource costs to the homework, then confirmed bycalculating activity drivers, products or indirect cost allocation method for imputation customer operation cost to go up. As China's manufacturing enterprises gradually to the diversification of product architecture, processcomplexity, the traditional cost accounting method has been unable to meet the needs of enterprises, in order to adapt to the modern manufacturingenvironment and management needs to emerge as the times require, with the basic concept of the operating cost method and principle of this paper, the operating cost method by different drivers, can allocate reasonable manufacturing costs. Another analysis of theapplication of ABC in our country manufacturing industry, through caseanalysis between ABC and the traditional cost method, finally put forward some suggestions to push the activity-based costing method.