This paper shows how action theories, expressed in an extended version of the language B, can be naturally encoded using Prioritized Default Theory. We also show how prioritized default theory can be extended to express preferences between rules. This extension provides a natural framework to introduce different types of preferences in action theories--preferences between actions and preferences between final states. In particular, we demonstrate how these preferences can be expressed within extended prioritized default theory. We also discuss how this framework can be implemented in terms of answer set programming.