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Above-The-Line Costs

What is '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.

Explaining '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.


Further Reading


Total Corporate Taxation:" Hidden," Above—the—Line, Non—Income Taxes
www.jstor.org [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

Accounting discretion in fair value estimates: An examination of SFAS 142 goodwill impairmentsAccounting discretion in fair value estimates: An examination of SFAS 142 goodwill impairments
onlinelibrary.wiley.com [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

Finance, policy and industrial dynamics—the rise of co‐productions in the film industryFinance, policy and industrial dynamics—the rise of co‐productions in the film industry
www.tandfonline.com [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

The political-economic origins of Reali-TVThe political-economic origins of Reali-TV
scholarcommons.scu.edu [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

The cost of capital in international financial markets: local or global?The cost of capital in international financial markets: local or global?
www.sciencedirect.com [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

The economics of tobacco in Lebanon: an estimation of the social costs of tobacco consumptionThe economics of tobacco in Lebanon: an estimation of the social costs of tobacco consumption
www.tandfonline.com [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

One-time charges: Never having to say you're sorry?One-time charges: Never having to say you're sorry?
www.tandfonline.com [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

The relation between nonrecurring accounting transactions and CEO cash compensationThe relation between nonrecurring accounting transactions and CEO cash compensation
www.jstor.org [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …

A mean-variance synthesis of corporate financial theoryA mean-variance synthesis of corporate financial theory
www.jstor.org [PDF]
… total taxes in the US, there are significant tax-system re- lated costs, liabilities, and collection costs, which far … Total Corporate Taxation: "Hidden," Above-the-Line, Non-Income Taxes … taxes paid line along with employment taxes, but the other taxes are buried in the cost of goods …



Q&A About Above-The-Line Costs


Are there different meanings for "above the line cost"?

Yes, there are different meanings for "above the line cost".

What does above the line cost mean?

Above the line costs are costs that are above gross profit.

What do some companies consider to be above-the-line costs?

Some companies consider above-the-line costs to be those over operating profit.

How do above the line costs tend to vary over time?

Above the line costs tend to vary more over time than below the line costs.

What does "in accounting" mean?

In accounting means included in the calculation of net income in the income statement.

What does "polar opposite" mean?

The polar opposite is when something has two extremes on either side of it.

What are above-the-line costs?

Above the line costs are those 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.

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