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I have thought about this issue a lot and my ruling is that the special materials cost is tacked on at the end rather than being multiplied.

Why?

Because we have to think about the differences between size categories. I don't think that a large sized creature is necessarily 'better' than a tiny sized creature. They both get various modifiers and IMO it's pretty balanced, overall.

To me it makes no sense that a large set of mithral full plate should cost 4x the amount of a tiny set of mithral full plate. They both offer the same benefit and by insisting that special materials costs be doubled, it kinda unfairly punishes anyone playing a large+ sized character.

Obviously, a large set of mithral full plate would require far more mithral than a tiny set of mithral full plate. That much is a given. However, as someone already said, this isn't a game of real-world economics. Large sized characters still have to pay more no matter what, just not *drastically* more.