Above-The-Line Costs
Definition of 'Above-The-Line Costs'Costs incurred during the production of an advertising commercial that are associated with the creative side of it. These costs include those incurred for actors, music and photography. Because creativity cannot be measured directly, above-the-line costs may have little correlation with the creativity of an advertisement or commercial. That is, incurring high above-the-line costs may not necessarily result in a commercial with a high degree of creativity, while a low-budget commercial with minimal above-the-line costs may still be quite creative.In accounting, above-the-line costs can also refer to costs included in the calculation of net income in the income statement. |
|
Investopedia explains 'Above-The-Line Costs'Above-the-line costs are the polar opposite of below-the-line costs in advertising, which are costs associated with the non-creative part of the advertising commercial production. Below-the-line costs include expenses for props and equipment. |
Related Definitions
Articles Of Interest
-
Advertising, Crocodiles And Moats
Memorable advertising is a brick in the fortress that keeps competitors at bay. -
Increase Your Tax Refund With Above-The-Line Deductions
Find out about these deductions and how you can use them to lower your tax bill. -
Don't Be Misled By Investment Advertising
Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading. -
Financial Media 4-1-1 For Investors
Cut through the information clutter and decipher the useful news from the useless. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
Explaining Amortization In The Balance Sheet
Amortization is important to account for intangible assets. Read to find out more about amortization. -
Top 4 Most Competitive Financial Careers
If your goals include a big paycheck and working for a Wall Street firm, then you need to learn how to meet employers' expectations. -
A Day In The Life Of A Public Accountant
Here's an inside look at the workdays of two experienced CPAs, to give you an idea of what it might be like to pursue a career as a public accountant. -
Earnings Guidance: Can It Accurately Predict The Future?
Explore the controversies surrounding companies commenting on their forward-looking expectations. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up".
Free Annual Reports