Surplus is a commonly used concept in the economic field, but not everyone understands the essence of it What is a surplus?, methods to create surplus value. If you are interested, let’s Banktop Find the answer in today’s post.

What is a surplus?

Learn about residual value
Learn about residual value

A simple surplus is the amount of money the owner has when creating goods for sale and profit after deducting processing and production costs.

For example: Mrs. A hires employee B to work at her company at a cost of 30,000VND/hour. In 1 hour, worker B works with productivity and creates products worth 50,000VND. So the difference of 20,000VND is the surplus that the owner has.

“T – H – T” is a formula that represents residual value. According to a circular rule when having Money and using that money to create Goods, the difference in selling goods to receive a higher amount of Money initially.

Learn the nature of surplus

As the concept and detailed examples of what is surplus we have said, the essence of that surplus is that capitalism will exploit the time and effort of the lower classes of citizens and workers to create value, wealth for yourself.

The more capitalists oppress and exploit workers’ labor, the greater the surplus value they will receive in return. This is also due to the fact that the rich are getting richer and richer and the poor are stuck in poverty.

Factors affecting the residual value

Factors affecting the surplus value of business owners and companies such as:

  • Manager level.
  • Capital.
  • Intensity of work.
  • Work productivity.
  • Equipment.
  • Production technology.
  • etc…

With the current strong development of technology, manual work is gradually being replaced by intelligent technological equipment. Helps improve work productivity and create more value than traditional ways.

Synthesize methods to create surplus value

Synthesize methods to create surplus value
Synthesize methods to create surplus value

Producing absolute surplus value

Producing absolute surplus value, investors use this method to prolong the working time and labor of citizens to improve their sources of income. Meanwhile, the value of effort, time and work productivity must not be changed to properly evaluate the labor power of citizens.

Producing relative surplus value

Producing relative surplus value is the investor’s method of shortening the citizen’s labor time. Then increase the labor time to raise the surplus and not change the labor intensity as well as the working day conditions of the citizens.

What is the formula for calculating residual value?

The formula for calculating surplus value is the surplus value ratio calculated according to the parameters related to the surplus value of the owner who employs workers to produce surplus value expressed as a percentage. hundred. The specific formula is as follows:

Residual Value Ratio: M’ = M/V * 100%

In there:

  • M’: is the rate of surplus value
  • M: is the residual value
  • V: is capital (citizens) that is variable.

Alternatively, you can also apply the formula:

M’ = T’/T * 100%

In there:

  • M’: is the rate of surplus value
  • T’: represents surplus labor time
  • T: is the required labor time.


Thus, through the article of Banktop you can also understand simple What is a surplus? How is the formula calculated? Help you have an overview and gain more knowledge about the field of business and finance. You can also apply the above formula to serve your business.

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