D559 Advanced Managerial Accounting is part of WGU's Master of Science in Accounting, in the Management Accounting track. WGU describes it as problem-solving for managerial accounting issues, preparing accountants for their role in planning and controlling an organization.
It builds on undergraduate cost accounting. The challenge is judgment: choosing which information is relevant to a decision and explaining the choice to managers, not only calculating costs.
Course at a Glance
| Item | Details |
|---|---|
| University | Western Governors University (WGU) |
| Course | D559 Advanced Managerial Accounting |
| Level | Graduate (MS Accounting, Management Accounting track) |
| Competency units | 3, term 3 of the standard path |
| Typical work | Costing, budgeting and decision problems with written analysis |
WGU has revised the course description over time, and earlier program versions also mention variable and absorption costing and time value of money techniques. Check your own course page for your version.
What D559 Covers
| Competency (summarized) | In practice |
|---|---|
| Evaluate scenarios using product costing and activity-based costing | Assigning overhead to products using the right method |
| Evaluate the impact of organizational activities to make business decisions | Choosing relevant costs and benefits |
| Evaluate budgets to make financial decisions | Building and reading budgets and variances |
| Evaluate decisions using responsibility accounting, strategic performance management and differential analysis | Judging managers and options with comparable data |
Key Concepts Explained
Activity-Based Costing
ABC assigns overhead using the activities that cause it rather than a single volume measure. It matters when products use resources very differently.
Example: Machine setups cost $60,000 a year and there are 300 setups, so each costs $200. A product needing 40 setups carries $8,000 of setup cost, however few units it makes. A volume-based rate would spread that cost unfairly.
Differential Analysis
Compare options by looking only at costs and revenues that differ between them.
Example: Making a part costs $12 in variable costs and $3 of fixed overhead that will continue anyway; buying costs $13. The relevant comparison is $12 against $13, so making is cheaper by $1 a unit.
Responsibility Accounting
Managers should be evaluated on items they control. Separate controllable from uncontrollable costs in any performance report.
Typical Assignments and How to Approach Them
| Task | What it tests | How to approach it |
|---|---|---|
| Costing problem | Correct allocation method | State the cost driver, compute the rate, then apply it |
| Budget analysis | Interpreting variances | Separate price and quantity effects |
| Decision case | Relevant costing | Remove sunk and unavoidable costs, then compare |
Writing the Decision, Not Just the Maths
Managerial accounting answers should end in advice. After computing a result, state the recommendation, the main figure supporting it and a risk or non-financial factor, such as quality, capacity or customer impact.
A tidy structure is: recommendation, calculation, assumptions, other factors. It keeps your reasoning visible and lets a reviewer award marks for judgment even if a number needs correcting.
Where D559 Sits in the Program
In WGU's Management Accounting specialization, Advanced Managerial Accounting is taken in term 3 with Corporate Financial Analysis and Internal Auditing I. It follows the data analytics courses, which means you are expected to handle data and spreadsheets confidently before the costing and budgeting work starts.
Worked Example: A Flexible Budget Variance
Variance analysis compares what happened with what should have happened at the actual activity level.
Example: Budgeted direct materials are $4 per unit for 10,000 units ($40,000). The firm actually makes 11,000 units and spends $46,200. The flexible budget is 11,000 x $4 = $44,000, so the variance is $2,200 unfavorable. Against the static budget it looks like $6,200 unfavorable, which wrongly blames the manager for higher volume.
That distinction between static and flexible budgets is a common exam point and a good example of why responsibility accounting depends on comparing like with like.
Strategic Performance Management
The fourth competency mentions strategic performance management. In practice that means linking measures to strategy, using financial and non-financial indicators such as quality, delivery time or customer satisfaction, and checking that managers are not rewarded for short-term results that damage the long term.
Where Students Get Stuck
- Allocated overhead treated as relevant. Ask whether the cost changes under each option.
- Choosing a poor cost driver in ABC.
- Variance direction. Label favorable and unfavorable clearly.
- Calculations without conclusions.
Study Tips for D559
- Practice ABC with several drivers to see how rates change.
- Always list relevant costs before comparing options.
- Create a variance cheat sheet with formulas and signs.
- End each practice answer with a one-sentence recommendation.
How We Help with D559
Send the case, rubric and feedback. A writer with management accounting experience prepares a worked model, explains the method, or reviews your own work. Our accounting assignment help guide has wider support.
GradeEssays is independent of Western Governors University. Our work is a study and reference aid; submit only your own work under WGU's academic integrity policy. Free revisions; full refund if late.
Get D559 Explained Clearly
Share your case and workings. We prepare a custom analysis or review your own draft.
Start My D559 HelpFree revisions · Full refund if late · Written from scratch for your order
Frequently Asked Questions
WGU's MS Accounting Management Accounting specialization, in term 3.
A method that assigns overhead based on the activities that drive it.
Comparing options using only the costs and revenues that differ.
Yes, WGU has revised it, so use your course page for the current version.
No. We provide study support only.
Check your course page; focus on method, accuracy and explanation.