A business case contains the following in its management summary:'The recommended option meets the new...

To identify the categories of costs and benefits described in the extract, we need to analyze the content carefully:

Extract Analysis:

"New business policies and processes will be introduced, which may temporarily reduce productivity":

This refers to acostassociated with implementing new policies and processes.

Productivity is anintangible factorbecause it cannot be directly measured in monetary terms.

Category: Intangible costs.

"It will ensure our products remain in the marketplace and be the first to receive compliance certification, which will enhance our reputation as the market leader":

This refers to abenefitrelated to maintaining market presence, achieving compliance, and enhancing reputation.

Reputation and market leadership areintangible factorsbecause they are qualitative and not directly quantifiable in monetary terms.

Category: Intangible benefits.

Evaluation of Each Option:

A. Tangible costs:Tangible costs are measurable financial expenses (e.g., equipment, labor). The extract does not mention any specific financial costs.Conclusion:This isnot relevant.

B. Intangible costs:The temporary reduction in productivity is an intangible cost.Conclusion:This isrelevant.

C. Tangible benefits:Tangible benefits are measurable financial gains (e.g., increased revenue). Theextract does not mention any specific financial benefits.Conclusion:This isnot relevant.

D. Intangible benefits:Enhanced reputation and market leadership are intangible benefits.Conclusion:This isrelevant.

E. Irregular costs:Irregular costs refer to one-time or infrequent expenses. The extract does not describe such costs.Conclusion:This isnot relevant.