P&L, COGS, overhead, bottom line: you’ve heard these terms in meetings, but could you define them if someone asked? In the era of AI, critical thinking sets communicators apart, and it starts with understanding how your organization makes money. In this episode of Real Biz, Kris MacAuslan walks through a sample income statement and explains the six terms every communicator should know. You’ll learn how to:
- Explain what a profit and loss statement (or income statement) is and the core question it answers.
- Recognize the “top line” and what leadership means by “growing revenue” or “sales are down.”
- Identify the costs tied to delivering products or services and what rising COGS signals.
- Use gross profit as a reality check on efficiency, costs and pricing.
- Define “overhead” and anticipate cost cuts like hiring freezes, budget reductions or layoffs.
- Connect the “bottom line” to margins, “hitting our numbers” and what matters to shareholders.
Plus: how these line items affect one another, and how to use that knowledge to plan key messages before business decisions land.
