=+EX 18-4 Classifying costs as product or period costs obj. 2 From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

a. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses).

b. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.