Term: ABOVE-THE-LINE

Any normal expense or income which has been included in the calculation of a company’s gross profit and which is a part of its normal business (such as cost-of- sales or sales). This is as opposed to below-the- line incomes and expenses which are taken out after gross profit – so fixed expenses like finance costs, salaries, rent and so on. So, the “line” is at gross profit. Expenses which are above-the-line rise and fall with sales while below-the-line are generally the same no matter how large or small sales are.

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