# Cost of Container
When material is supplied in containers (drums, cylinders, crates), the cost of the container may or may not form part of the material cost depending on whether the container is refundable.
## Two Categories
| Refundable Containers | Non-Refundable Containers |
|---|---|
| On returning the container, the buyer gets a refund — either 100% or partial. | Even if returned, the buyer gets no refund. |
| Only the net (unrefunded) portion is added to material cost. | The full container cost is added to material cost. |
## Golden Rule
> "How much money have you paid out of pocket?" — That is the amount to be added to material cost.
## Illustration
Assume container cost = ₹1,000.
| Case I (Fully Refundable) | Case II (Partially Refundable) | Case III (Non-Refundable) | |
|---|---|---|---|
| Amount paid | 1,000 | 1,000 | 1,000 |
| Refund received | (1,000) | (600) | 0 |
| Cost included in material | 0 | 400 | 1,000 |
## Where it appears in valuation
This figure is added as part of 'Other Expenditure' in the Cost of Material format (alongside freight inwards and insurance).