Thank you very much for your reply. If I give a flash drive or Dvd with the clients photos to them, (and I never get it back), wouldn't that be part of "cost of goods"? Or if a client does not want us to edit the photos but just wants the memory card - is that in that case then "cost of goods"? I understand the point of using photoshop but what about photo editing service for a specific job. If we hire a company to touch up just 5 specific photos for a client it is in my opinion producing the final product (photo). In general can a service be considered "cost of good"? A different item: If I buy a sign "just married" to use at a photo shoot for a wedding couple is that "cost of good"?
