What is an opportunity cost? When do opportunity costs affect short-run decisions? What accounting problems do opportunity costs involve? In disposing of inventory that has already been manufactured,...

What is an opportunity cost? When do opportunity costs affect short-run decisions? What accounting problems do opportunity costs involve?

In disposing of inventory that has already been manufactured, what costs should be considered when the product is: (i) Still marketable in a normal way and (ii) Obsolete, damaged or out of fashion?