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what does above and below the line mean

by Dr. Emile Pfannerstill Published 3 years ago Updated 2 years ago

Below the Line – “Above the Line” refer to the income and expenses that a company incurs due to normal operations. It is also the gross margin that a business earns. Whereas, below the line is operating expenses, interest, and taxes.

Full Answer

What does it mean to be 'above the line'?

What does Above The Line mean? Above The Line (or ATL) refers to conventional marketing techniques using mass media such as TV, Radio, Billboards or the Internet. The term “The Line” came from a specific ad campaign.Back in 1954 Proctor and Gamble apparently paid different rates for different marketing techniques, and so “The Line” would have been an actual line in their accounting ledger.

What does below the line mean?

Xinliang Zhang, CEO of the Company, commented: “The Company’s new name better reflects the Company’s international business line beyond its Wunong Net ... and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent ...

What does below the line mean accounting?

Below-the-Line Advertising

  • Understanding Below-the-Line Advertising. Below-the-line advertising seeks to reach consumers directly, instead of casting a wide net to reach mass audiences.
  • Above-the-Line vs. Below-the-Line Advertising. ...
  • Advantages of Below-the-Line Advertising. Lower costs are arguably the biggest advantage of below-the-line advertising. ...

What does live below the line mean?

Unsourced material may be challenged and removed. Live Below the Line is an annual anti-poverty campaign, which challenges participants to feed themselves on the equivalent of the extreme poverty line for five days in order to gain an insight into some of the hardships faced by those who live in extreme poverty.

What does above the line below the line mean?

Key Takeaways. Above-the-line costs include all costs above the gross profit, while below-the-line costs include costs below gross profit. Above-the-line costs are often referred to as the cost of goods sold (COGS), while below-the-line is operating and interest expenses and taxes.

What does below the line means?

Below the Line refers to items in a profit and loss statement that are income or expense items that are not normally incurred in a company's day-to-day operations. It includes exceptional and extraordinary items that relate to another accounting period or do not apply to the current accounting period.

Can be above the line or below the line?

As you'll remember from our Quick Guide to Conscious Leadership, below the line leadership occurs when a leader is closed, defensive, and committed to being right. On the contrary, above the line leadership occurs when a leader is open, curious, and committed to learning.

What does total above the line mean?

Above the line credits (also called ATL) in film production refer to the positions responsible for the creative development of the film—before pre-production or principal photography ever begins. The people in these positions make major decisions about the look and feel of the project.

What are above line and below line strategies?

Below-the-line advertising campaigns include direct mail campaigns, trade shows, catalogs, and targeted search engine marketing. Above-the-line methods are ideal for general brand awareness, while below-the-line tactics are preferable for fostering direct relationships with potential customers.

Are cinematographers above or below the line?

Above the line refers to those jobs that involve creative or artistic talent–the screenwriter, director, cinematographer, and actors, who are “above” the title frame of a film.

What is the difference between above the line and below the line in film?

The term “above-the-line” refers to all those expenses related directly to making the picture such as talent salaries and crew costs. Below-the-line items are all other expenses including everything from catering to rentals and miscellaneous expenses.

What is the difference between above the line and below the line deductions?

However, the number of above-the-line deductions you take directly affects the amount and type of “below-the-line” deductions for which you're eligible. Below-the-line deductions, more commonly known as itemized deductions, include any deduction reported beneath the line for AGI calculation on your tax return.

What positions are below the line?

Below-the-line crew refers to everybody else including:Assistant director.Art director.Best boy electric and grip.Boom operator.Camera operator.Carpenter (theatre)Character generator (CG) operator (television)Director of photography.More items...

What is below the line expense?

The below the line definition is income or expense in accounting which have no noticeable effect on company profits in the current period; however, it is an unofficial term. This term is used by people in-the-know who deal with above and below the line items and account for expenses regularly.

Definition

The “line” generally refers to gross profit. Above that line on the income statement, typically, are sales and COGS (cost of goods sold) or COS (cost of sales or cost of services). Below the line are operating expenses, interest, and taxes.

Example

In this sample income statement, you can see that COGS is “above the line” of gross profit and operating expenses and taxes are “below the line.” Amounts shown in thousands.

Book Excerpt

The accounting department has to make decisions about what to include in COGS and what to put somewhere else. Some of those decisions are easy. In a manufacturing company, for instance, the following costs are definitely in: the wages of the people on the manufacturing line; the cost of the materials that are used to make the product.

What is above the line and below the line?

Above the Line and Below the Line is a jargon we use to manage the resources available in the company to deliver a surplus result. ATL on the income statement is profit or income separated from other expenses. They are the sales cost of goods sold (COGS), cost of sales, and cost of services (COS). Whereas Below the Line in accounting is an extraordinary income or expenses that the company incurred. However, these income or expenses are not repeated, nor it affects the revenue or profit of the company. Above the Line tells about income and expenses that are related to the normal operations of a company. Here, we calculate the profit by subtracting expenses from revenue. If the revenue exceeds the cost, then that means the company has booked a profit. Whereas if the cost exceeds the revenue means the company has booked loss during an accounting period#N#Accounting Period Accounting Period refers to the period in which all financial transactions are recorded and financial statements are prepared. This might be quarterly, semi-annually, or annually, depending on the period for which you want to create the financial statements to be presented to investors so that they can track and compare the company's overall performance. read more#N#.

What is the difference between above and below the line?

The key difference between above and below the line is that Above the Line represents items which are shown above the value of the gross profit of the company in its statement of income during the period under consideration, whereas, Below the Line represents items which are shown below the value of the gross profit of the company in its statement of income during the period under consideration.

What is above the line?

Above the Line vs. Below the Line – “Above the Line” refer to the income and expenses that a company incurs due to normal operations. It is also the gross margin that a business earns. Whereas, below the line is operating expenses, interest, and taxes.

What is below the line in accounting?

Whereas, Below the Line in accounting is an extraordinary income or expenses that the company incurs. Still, these income or expenses do not repeat, nor it affects the revenue or profit of the company.

What does "below the line" mean?

Below the Line does not affect profit and loss account of the company; hence it tells about real the real financial health of the company without artificial inflating. Below the Line in accounting terms describes items other than the dividend. Dividend Dividend is that portion of profit which is distributed to the shareholders ...

What is below the gross profit?

In contrast, the item below the gross profit is Below the Line items that include other operating expenses like tax, interest, operating expenses, and other extraordinary expenses.

What does it mean to be above the line?

Above the line behaviors indicate openness, security in one’s self, and the taking on of personal responsibility. When someone operates from above the line they view life through the lens of a creator, as someone who is able to impact and learn from their environment, interpreting life through a “by me” lens.

What does it mean when someone is below the line?

Below the Line Behaviors. Below the line behaviors often indicate the presence of victimhood mentality or failure to take personal responsibility. When someone operates from below the line they view life through the lens of a victim, always being at the affect of life and interpreting it through a “to me” lens.

What is above the line behavior?

Above the line behavior means being open, curious, and committed to learning, and nearly all situations can be improved by approaching them with this perspective in mind. Conclusion: Embracing an above the line approach to life is bound to transform the way you perceive and interact with the world.

What does above the line leadership look like?

When we do though, above the line behavior most looks like taking ownership, accountability, and responsibility for one’s actions.

What does it mean when your thinking is below the line?

When your thinking is below the line, you're protecting and defending yourself either passively (not contributing at all), or aggressively (by attacking others). This type of thinking is about trying to avoid responsibility, criticism and loss of control, e.g.

What is above the line thinking?

Above the line thinking is about being open and curious. It’s being able to respond effectively and usefully in any given situation. It’s about starting with an intention and then working out how you can actually bring it into play, e.g.

Who introduced the above the line and below the line concept?

A note about where the ‘above the line and below the line’ concept come from. We came across this concept through organisational culture expert Carolyn Taylor and her classic book Walking The Talk. In it, she mentions that she was introduced to the idea by her friend Robert Kiyosaki of Rich Dad Poor Dad fame.

Why do we use absolute language?

Notice when you're using absolute language because it's telling you something isn’t sitting right. Remember, your language is the antecedent to your thoughts which is the antecedent to your beliefs about yourself and the world in general. Examples of below the line language include: No. But.

What is below the line advertising?

Below the line advertising – In contrast to ATL, below the line advertising is directed to reach a small, targeted audience. BTL includes marketing activities such as brochures, direct mail, flyers, sponsorships and email campaigns.

Why is above the line advertising important?

Above the line advertising has many benefits as it is designed to reach a larger audience and boost brand awareness. However this form of marketing does carry a costly price tag and is generally reserved for the larger corporate organisations.

What is ATL in advertising?

Above the line advertising – ATL is used when the focus is on mass media promotion to reach a large audience. ATL includes media such as radio, TV, print media such as newspaper and magazines, and billboards. Below the line advertising – In contrast to ATL, below the line advertising is directed to reach a small, targeted audience.

Is above and below the line advertising new?

Above and below the line forms of marketing are not new. They’ve both been around quite a while and continue to be important in our modern age of advertising. Since the dawn of marketing and advertising both concepts have been used depending on the audience that is being targeted. It’s important to note that both forms of advertising have their own unique benefits and advantages.

Is above the line advertising the best way to market a business?

Again, it all comes down to budget. However, it’s been proven that above the line advertising is not necessarily the best route to go when marketing your business.

What is above line item?

Above the line items refer to incomes and expenses that relate to the normal operations of a company. Unlike the below the line items, these items count when calculating the profit earned or loss incurred during an accounting period.

What is below the line income?

In such cases, below the line expenses means all expenditures that do not affect gross profit, but will affect net income.

What is a P&L statement?

Profit and Loss Statement (P&L) A profit and loss statement (P &L), or income statement or statement of operations, is a financial report that provides a summary of a. statement that are income or expense items that are not normally incurred in a company’s day-to-day operations. It includes exceptional and extraordinary items ...

What does "below the line" mean?

What does below the line mean? Below the line in production refers to, in a budgetary sense, any production costs that are not "above the line.". This can include film crew salary, publicity, music rights, and cutting together a trailer. In addition to its budgetary relationship, below the line also denotes the roles on a film crew which are ...

What is considered below the line?

Even major positions are considered below the line such as the production designer, editor, and DP. While it is true that positions like production designer, editor and DP do include a great deal of creativity in their work, the positions are not considered to hold creative ...

Why are crew positions placed above or below the line?

Crew members placed 'below' are typically budgeted at a ‘variable rate,’ meaning that their pay can fluctuate based on certain factors affecting a production. If we were to look at the earnings of a best boy as an example.

What is below the line in a crash course?

Crash Course gives us a below the line definition. Above the line personnel are typically present for a film’s entire production span, but that might not necessarily be the case for below the line personnel. There are a number of reasons why these crew members may be swapped out during production. They may be replaced before a shoot has concluded ...

Can you replace below the line crew?

They may be replaced before a shoot has concluded at the discretion of the film’s producers or at the request of the director. Below the line personnel may also be part of just one of multiple complete film crews involved in a production. This is especially common for films shot in more than one location since it is often easier to crew-up ...

What is below the line item?

Below-the-line items are deducted directly from the company's RESERVES rather than being charged against the profits of the trading period, to avoid affecting the trading profit with one-off, non-trading revenues or costs.

Why are below the line items not considered to increase or decrease the company's profit?

Because they are not repeated, below the line items are not considered to increase or decrease the company's profit. See also: Above the line. 2. Advertising in which a company pays a commission based on the success of the campaign. Below the line advertising is most common in direct mail and similar campaigns that rely on a customer's reaction ...

What Is Above The Line?

  1. It refers to as costs above the line that separates operating income from other expenses. It also refers to the costs above the line that separates gross profit from other operating expensesOperati...
  2. The expenses incurred by COGS are wages to labor, manufacturing cost, cost of raw material, and all expenses other than interest, tax, and operating expenses.
  1. It refers to as costs above the line that separates operating income from other expenses. It also refers to the costs above the line that separates gross profit from other operating expensesOperati...
  2. The expenses incurred by COGS are wages to labor, manufacturing cost, cost of raw material, and all expenses other than interest, tax, and operating expenses.
  3. Companies that are in the service industry and utility companies consider expenses above operating income line as Above the Line cost. We can call it a cost before operating expenses incurred while...
  4. Anything above the operating income line is ATL cost. It is COGS or equivalent accounts that we subtract from sales done by the company to compute profit.
See more on wallstreetmojo.com

What Is Below The Line?

  1. Below the Line does not affect profit and loss accountProfit And Loss AccountThe Profit & Loss account, also known as the Income statement, is a financial statement that summarizes an organization'...
  2. Below the Line in accounting terms describes items other than the dividendDividendDividends refer to the portion of business earnings paid to the shareholders as gratitude for investing i…
  1. Below the Line does not affect profit and loss accountProfit And Loss AccountThe Profit & Loss account, also known as the Income statement, is a financial statement that summarizes an organization'...
  2. Below the Line in accounting terms describes items other than the dividendDividendDividends refer to the portion of business earnings paid to the shareholders as gratitude for investing in the comp...
See more on wallstreetmojo.com

Above The Line vs. Below The Line Infographics

  • Here we provide you with the top 5 difference between Above the Line vs. Below the Line. You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked For eg: Source: Above the Line vs Below the Line(wallstreetmojo.com)
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Above The Line vs. Below The Line – Key Differences

  • The critical differences between Above the Line vs. Below the Line are as follows – 1. Above the Line (ATL) on the income statement is profit or income separated from other expenses. They are sales COGSCOGSThe Cost of Goods Sold (COGS) is the cumulative total of direct costs incurred for the goods or services sold, including direct expenses like raw material, direct labour cost an…
See more on wallstreetmojo.com

Final Thought

  • Above the Line and Below the Line is a jargon we use to manage the resources available in the company to deliver a surplus result. ATL on the income statementIncome StatementThe income statement is one of the company's financial reports that summarizes all of the company's revenues and expenses over time in order to determine the company's profit or loss and measur…
See more on wallstreetmojo.com

Recommended Articles

  • This article has been a guide to the Above the Line vs. Below the Line. Here we discuss the top differences between Above the Line vs. Below the Line along with infographics and comparison table. You may also have a look at the following articles – 1. Differences Between Shares vs Debentures 2. Current Assets vs Non-Current Assets 3. Operating Profit vs Net Profit 4. ROE vs R…
See more on wallstreetmojo.com

Below The Line Behaviors

Image
Below the line behaviors often indicate the presence of victimhood mentality or failure to take personal responsibility. When someone operates from below the line they view life through the lens of a victim, always being at the affect of life and interpreting it through a “to me” lens. They are closed, defensive, and committed t…
See more on sunderlandcoaching.com

Above The Line Behaviors

  • Above the line behaviors indicate openness, security in one’s self, and the taking on of personal responsibility. When someone operates from above the line they view life through the lens of a creator, as someone who is able to impact and learn from their environment, interpreting life through a “by me” lens. They are open, curious, and committed t...
See more on sunderlandcoaching.com

Above The Line Leadership in Everyday Life

  • Above the line leadership isn’t only applicable in professional settings. The principles of above the line leadership can just as easily be applied to personal relationships. By not being defensive, not assuming that you already know everything there is to know about a situation, and not feeling the need to defend being right, huge leaps forward can be made in everyday conversations with stra…
See more on sunderlandcoaching.com

Conclusion

  • Embracing an above the line approach to life is bound to transform the way you perceive and interact with the world. Jim Dethmer, Diana Chapman, and Kaley Waner Klemp, the authors of The 15 Commitments of Conscious Leadership, even go so far as to call the concept of above the line and below the line leadership “the most important model we know of for being a conscious lead…
See more on sunderlandcoaching.com

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      receivinghelpdeskask
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        Metadata
        Bindings
        • 0. 2025-06-23 07:24:03
        • 1. what-does-above-and-below-the-line-mean
        Backtrace
        • 15. /app/Providers/RouteServiceProvider.php:54
        • 18. /vendor/laravel/framework/src/Illuminate/Routing/Router.php:842
        • 19. Route binding:39
        • 20. /vendor/laravel/framework/src/Illuminate/Pipeline/Pipeline.php:167
        • 21. /vendor/laravel/framework/src/Illuminate/Foundation/Http/Middleware/VerifyCsrfToken.php:78
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        4.92msmiddleware::checkdate:30receivinghelpdeskask
        Metadata
        Bindings
        • 0. 172585
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        Backtrace
        • 19. middleware::checkdate:30
        • 20. /vendor/laravel/framework/src/Illuminate/Pipeline/Pipeline.php:167
        • 21. /vendor/laravel/jetstream/src/Http/Middleware/ShareInertiaData.php:61
        • 22. /vendor/laravel/framework/src/Illuminate/Pipeline/Pipeline.php:167
        • 23. /vendor/laravel/framework/src/Illuminate/Routing/Middleware/SubstituteBindings.php:50
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        900μs/vendor/outl1ne/nova-menu-builder/src/helpers.php:32receivinghelpdeskask
        Metadata
        Bindings
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        Backtrace
        • 15. /vendor/outl1ne/nova-menu-builder/src/helpers.php:32
        • 17. /vendor/laravel/framework/src/Illuminate/Routing/Controller.php:54
        • 18. /vendor/laravel/framework/src/Illuminate/Routing/ControllerDispatcher.php:45
        • 19. /vendor/laravel/framework/src/Illuminate/Routing/Route.php:261
        • 20. /vendor/laravel/framework/src/Illuminate/Routing/Route.php:205
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        730μs/vendor/outl1ne/nova-menu-builder/src/Models/Menu.php:35receivinghelpdeskask
        Metadata
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        • 19. /vendor/outl1ne/nova-menu-builder/src/Models/Menu.php:35
        • 20. /vendor/outl1ne/nova-menu-builder/src/helpers.php:33
        • 22. /vendor/laravel/framework/src/Illuminate/Routing/Controller.php:54
        • 23. /vendor/laravel/framework/src/Illuminate/Routing/ControllerDispatcher.php:45
        • 24. /vendor/laravel/framework/src/Illuminate/Routing/Route.php:261
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        Backtrace
        • 24. /vendor/outl1ne/nova-menu-builder/src/Models/Menu.php:35
        • 25. /vendor/outl1ne/nova-menu-builder/src/helpers.php:33
        • 27. /vendor/laravel/framework/src/Illuminate/Routing/Controller.php:54
        • 28. /vendor/laravel/framework/src/Illuminate/Routing/ControllerDispatcher.php:45
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        283ms/app/View/Composers/SidebarView.php:22receivinghelpdeskask
        Metadata
        Bindings
        • 0. publish
        Backtrace
        • 14. /app/View/Composers/SidebarView.php:22
        • 15. /app/View/Composers/SidebarView.php:12
        • 16. /vendor/laravel/framework/src/Illuminate/View/Concerns/ManagesEvents.php:124
        • 17. /vendor/laravel/framework/src/Illuminate/View/Concerns/ManagesEvents.php:162
        • 20. /vendor/laravel/framework/src/Illuminate/View/Concerns/ManagesEvents.php:177
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        Metadata
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        • 0. 16568
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        • 21. view::2dd102cf0462e89a4d4d8bc77355d767652bf9aa:15
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        • 25. /vendor/livewire/livewire/src/ComponentConcerns/RendersLivewireComponents.php:69
        • 26. /vendor/laravel/framework/src/Illuminate/View/Engines/CompilerEngine.php:61
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