cottoncanndy, it would be extremely nice if you would start a new thread for your question instead of dragging up an old one. (We'd have 100-mile long threads if everyone did that.)
But a single-step versus multi-step is not at all related to whether you have a cost of goods sold account. If you think that, it's probably only because most textbooks tend to introduce the concept in a merchandising chapter.
Multi-step doesn't just mean separating out cost of goods sold and gross margin. It also means separating other types of expenses, and separating non-operating revenues and expenses, etc. Have a look at this:
Single-Step Income Statement | AccountingCoach.com
Notice how interest revenues and gains were included in the income section? They don't really belong there if you're following proper rules.
Then go here:
Multiple-Step Income Statement | AccountingCoach.com
Notice those revenues (along with a couple of expenses/losses) ended up in a separated section at the bottom. Notice the second paragraph where it says those are non-operating items being separated. It says it "also" shows gross profit, but "also" means in addition to other things.
If you will re-read what I wrote to the other person, a cost of services (cost of sales, whatever) can be used for service businesses. You can charge costs more directly related to the revenues from, uh, whatever it is you're doing. (Sorry, don't do yoga and not sure what people are paying for.) Like if you have salary of an employee working directly with customers, versus if you had the salary of a receptionist. Same sort of deal as I described to the other poster.
Do you have to do this? No. If you don't have to "follow the rules" then you can do your income statement any way you see fit. If you own your own business, it's up to you to decide what works best for you and how you would like to see that information presented. I bet I can think of more "cost of services," but if you don't think of them that way, that's up to you. I personally would have more issue with lumping something like a gain into your other revenues than about whether you separate out cost of services. But the only time you have to worry about strict rules is if a bank or some place wants audited statements, in which case you have to get a CPA anyway. (And don't worry about the IRS - if this is a sole proprietorship, you're following a Schedule C for that, and they won't get very picky, contrary to popular belief.)
Did I make that way more complicated than was necessary? :p