Above-The-Line Costs

AAA

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 TERMS
  1. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  2. Tailored Advertising

    Marketing and advertising campaigns that place emphasis on the ...
  3. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  4. Below The Line Advertising

    In general, an advertising strategy in which a product is promoted ...
  5. Advertising-To-Sales Ratio

    A measurement of the effectiveness of an advertising campaign ...
  6. Marketing Campaign

    Specific activities designed to promote a product, service or ...
Related Articles
  1. Don't Be Misled By Investment Advertising
    Home & Auto

    Don't Be Misled By Investment Advertising

  2. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

  3. Increase Your Tax Refund With Above-The-Line ...
    Taxes

    Increase Your Tax Refund With Above-The-Line ...

  4. Financial Media 4-1-1 For Investors
    Economics

    Financial Media 4-1-1 For Investors

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center