Above the Line Costs

The concept of above the line costs is associated with the production of the advertisement for a product or for the service of the business. These are the costs of the advertisements that are associated with the creative side of the production of the advertisement. The cost used for hiring actors, producing music, setting backgrounds and photography of the advertisement of the product. As we all know that we can never measure the creativity of an advertisement in terms of money so the above the line costs may have a very low correlation with the creativity and the sophistication of the advertisement.

The explanation of the above mentioned argument is that it is not always necessary that an advertisement with a high above the line costs also offers a high level of creativity of the product. Moreover it may be possible that an advertisement with a low above the line cost offer a high level of creativity for the advertisement.

There is another definition of above the line costs in accounting that means the cost that is included in the total costs of the income statement to find out the total income of the business. Above the line costs are considered to be the polar opposite of above the line costs in the field of advertising. The above the line costs are the costs that are associated with non creative part of the production of an advertisement.

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