USA Travel business repackaging as COGS?

[SolarGreen]

Have a client with a travel business - she buys blocks from hotels and other travel services (transportation, etc.) and then marks up as part of a larger travel package. Assume that the hotel expenses should be classified as COGS even though the physical inventory is never possessed. (This seems distinct from a travel operator who simply earns commissions by selling a specific package.)

Is COGS the right approach for these expenses?

KG

 

[kirby]

No. COGS is associated with businesses that sell goods. Does not apply to travel business.