The Redmond Products instructional problem exposes pitfalls of traditional absorption product costing systems. It promotes a discussion of errors inherent treating manufacturing overhead costs as “indirect” costs that should be “allocated” to products using a predetermined manufacturing...

As software ages, it is increasingly unable to leverage new technologies and fulfill the evolving user requirements. As a result, firms get an opportunity to introduce and sell upgrades that provide higher utility to consumers compared to an older and out-of-date software product. This is...