Introduction

BUSINESS:

Business is defined as the sum total of all operations involved in the manufacture and
distribution of supplies, production operations and the storage, processing and distribution of the
resulting commodities and items.

MANAGEMENT:

Management can be defined as a set of activities including planning and decision making,
organizing, leading and controlling directed at an organizations resource ( human,
Financial , physical and information) with the aim of achieving organizational goals in an
efficient an effective manner.

Mathematics is an important subject and knowledge of it enhances a person's reasoning,

problem-solving skills, and in general, the ability to think. Hence it is important for
understanding almost every subject whether science and technology, medicine, the economy, or
business and finance. Statistics and probability which are branches of mathematics are used in
everyday business and economics. Mathematics also has an important part of accounting, and
many accountancy companies prefer graduates with joint degrees with mathematics rather than
just an accountancy qualification. Financial Mathematics and Business Mathematics has two
important branches of mathematics in today's world and these are direct application of
mathematics to business and economics.

Business mathematics is mathematics used by commercial enterprises to record and manage

business operations. Commercial organizations use mathematics in accounting, inventory
management , marketing, sales forecasting and financial analysis. Agribusiness Business
management can be made more effective in some cases by use of more advanced mathematics
such as calculus, matrix algebra and linear programming. Examples used for problems in
Business Mathematics are usually real-life problems from the business world.

Business mathematics teaches us the mathematical concepts and principles of multivariate

calculus, and matrix algebra, differential equations and their applications in business. Business
mathematics involves concept understanding, problem formulation and solution, graphing etc.

Therefore students will be able to apply their mathematical skills to various business problems
for the optimal solutions.

Our business mathematics courses was started with the calculus: functions, annuity, limits,
derivatives and anti derivatives (integrals) with their properties and applications (demand,
elasticity; total costs, total revenue, total consumption, total savings and their marginal
propensities; interest rates, investment and capital formation etc).
Topics on multivariate calculus consist of functions of several variables, successive
differentiation ,partial differentiation , partial and higher order derivatives, relative and absolute
maxima and minima , double and multiple integrals with their properties and applications
(competitive and complementary demand relations; Cobb-Douglas production function; integral
average value calculations for different business problems; areas between curves and volumes
between surfaces; linear programming problems on profit maximization and cost minimization
with sensitivity analysis and shadow prices; transportations problems, etc.).

Topics on matrix consist of operations with matrix and their properties, Cramers rule, Transpose
of a matrix, elementary row transformations including method of finding inverse , Ad joint of
a matrix and method of finding inverse etc.

Topics on differential equations will consist of first order ordinary differential equations,
separable differential equations, homogeneous ordinary differential equations, first order linear
differential equations, equations with reducible order, linear homogeneous and non-
homogeneous equations of the second order with constant coefficients, linear systems with
constant coefficients with their applications ( applications of Cobb-Douglas
production function; linear trade model, etc.). Additional applications include expense
minimization principle; profit maximization and demand on resources; determination of the
volume of production which maximizes the profit (non-linear case); analysis of companies
controlled by labor in short run and in long run; measure of monopolistic power, etc.

APPLICATION AND IMPLICATION OF BUSINESS MATHEMATICS

Business mathematics gives the students expanded knowledge of mathematic applications for
personal use and business applications. Personal use application includes financing costs
and loan procedures, as well as major consumer expenses and earnings
auto/housing/insurance/wages/benefits/banking/investing.

business applications includes the cost of recruiting, hiring, training, maintaining employees;
manufacturing/production costs; purchasing/selling/marketing costs;
transportation/warehousing/inventory costs; and financial management and planning.

Various application of business mathematics in production

1. Cost of manufacturing a product

2. Break-even analysis

3. Quality control
4. Time study

5. Fundamental processes

a. Compute break-even point in number of manufactured units

b. Compute percent of defective goods

c. Use time and study results to compute number of units that can be
produced and percent of time on task

d. Compute dimensions of packaging containers

Application in purchasing and selling

1. Discountstrade, chain, cash

2. Selling prices

3. Net profit

4. Fundamental processes

a. Compute net price

b. Compute trade discount rate

c. Compute cash price

d. Compute selling price

Application in Marketing and services

1. Projected sales

2. Advertising costs

3. Pricing products

4. Cost of buildings, maintenance, equipment, and utilities

5. Consultants fees

6. Fundamental processes

a. Compute rate of response to survey

b. Compute annual sales potential of a product and market share

 c. Compute cost of advertisingnewspaper and television

d. Compute selling price that will result in h

e. Compute rental and utility costs

Application in Warehousing and distribution

1. Storage space

2. Inventory

3. Transportation

4. Fundamental processes

a. Compute total storage space

b. Compute inventory value and cost of carrying inventory

c. Compute shipping cost by truck

Application in Business accounting

1. Apportioning expenses

2. Depreciation

3. Complete financial statements

4. Vertical/horizontal analysis of financial statements

5. Fundamental processes

a. Compute the percent of business expense to total expense

b. Compute a departments share of total business expense

c. Use depreciation methods

d. Compute total assets, liabilities, and owners equity

e. Compute cost of goods sold

f. Compute ratios and percentage of change

Application in financial management and planning

1. Corporate income taxes

2. Raising capitalissuing stocks and bonds and commercial loans

3. Growth expenses

4. Inflation

5. Gross Domestic Product/Consumer Price Index Problem-Solving

Importance of Mathematics:
Mathematics is an important subject and knowledge of it enhances a person's reasoning,
problem-solving skills, and in general, the ability to think. Hence it is important for
understanding almost every subject whether science and technology, medicine, the economy, or
business and finance. Mathematical tools such as the theory of chaos are used to mapping market
trends and forecasting of the same. Statistics and probability which are branches of mathematics
are used in everyday business and economics. Mathematics also forms an important part of
accounting, and many accountancy companies prefer graduates with joint degrees with
mathematics rather than just an accountancy qualification. Financial Mathematics and Business
Mathematics form two important branches of mathematics in today's world and these are direct
application of mathematics to business and economics. Examples of applied maths such as
probability theory and management science, such as queuing theory, time-series analysis, linear
programming all are vital maths for business.

"Importance of Business Mathematics in Management" is sometimes called commercial math or

consumer math, is a group of practical subjects used in commerce and everyday life. In schools,
these subjects are often taught to students who are not planning a university education. In the
United States, they are typically offered in high schools and in schools that grant associate's
degrees.
Importance of Business Mathematics in Management is the differences in coursework from a
business mathematics course and a regular mathematics course would be calculus. In a regular
calculus course, students would study trigonometric functions. Business calculus would not
study trigonometric functions because it would be time-consuming and useless to most business
students, except perhaps economics majors. Economics majors who plan to continue economics
in graduate school are strongly encouraged to take regular calculus instead of business calculus,
as well as linear algebra and other advanced math courses, especially Real Analysis.

On the other way, meaning of business mathematics includes mathematics courses taken at an
undergraduate level by business students. These courses are slightly less difficult and do not
always go into the same depth as other mathematics courses for people majoring in mathematics
or science fields. The two most common math courses taken in this form are Business Calculus
and Business Statistics. Examples used for problems in these courses are usually real-life
problems from the business world.
A U.S. business math course might include a review of elementary arithmetic, including
fractions, decimals, and percentages. Elementary algebra is often included as well, in the context
of solving practical business problems. The practical applications typically include checking
accounts, price discounts, markups and markdowns, payroll calculations, simple and compound
interest, consumer and business credit, and mortgages.

The Importance of Mathematics in Business and Management

Business ownership requires more than skill in creating a product or talent at providing a service.
Overseeing the finances of your company is key to survival and success. Understanding basic
business math is necessary for profitable operations and accurate record keeping. Knowing how
to add, subtract, multiply, divide, round and use percentages and fractions is the minimum you
need to price your product and meet your budget. If math is not your strength, partner with
someone who can take over that role or hire a trusted employee to help your operation stay in the
black and grow responsibly.

Calculate Production Costs

Before you formally establish your business, you must estimate the cost to manufacture or
acquire your product or perform your service. Adding all expenses associated with making or
buying items helps you realize if you can be competitive with other companies and profitable
enough to sustain your business and make a reasonable income. In addition to the standard costs
of production, such as materials and machinery, add accompanying expenses, such as shipping,
labor, interest on debt, storage and marketing. The basis to your business plan is an accurate
representation of how much you will spend on each item.

Determine Pricing

To ensure you can operate your business and produce enough cash flow to invest into your
enterprise, you must charge enough for your product to be profitable. Markup is the difference
between your merchandise cost and the selling price, giving you gross profit. If your operations
require a large markup, such as 70 percent, you may not be competitive in your industry if other
companies sell the same items for less. Once you have determined your markup, one way to
calculate the retail price is to divide using percents or decimals. For example, if a product costs
$10 to produce and your markup is 35 percent, subtract .35 from 1 (or 100 percent), which gives
you .65, which is 65 percent. To calculate the price of your product, divide 10 by .65, which
rounds to $15.38.
Measure Profits

If you want to determine the net profit for a certain time period, you will need to subtract returns,
costs to produce an item and operating expenses from your total amount of sales, or gross
revenue, during that time. Discounts on products, depreciation on equipment and taxes also must
be calculated and subtracted from revenue. To arrive at your net profit, add any interest you
earned from credit extended to customers, which is reflected as a percent of the amount each
person owes. Your net profit helps you understand if you are charging enough for your product
and selling an adequate volume to continue to operate your business or even expand.
Analyze Finances

To analyze the overall financial health of your business, you will need to project revenue and
expenses for the future. It's important to understand the impact to your accounting records when
you change a number to reflect an increase or decrease in future sales. Estimating how much an
employee affects revenue will indicate if you can afford to add to your staff and if the profits
realized will be worth the expense. If a competitor starts selling a cheaper product, you may need
to calculate the amount by which your volume must increase if you reduce prices. You may need
to know if you can afford to expand your operations to improve sales. Using basic business math
to understand how these types of actions impact your overall finances is imperative before taking
your business to the next level.

Description of Importance of Business Mathematics in Management

Business management can be made more effective in some cases by use of more advanced
mathematics such as calculus, matrix algebra and linear programming. Commercial
organizations use mathematics in accounting, inventory management, marketing, sales
forecasting, and financial analysis. In academia, "Business Mathematics in Management system"
includes mathematics courses taken a tan undergraduate level by business students. These
courses are slightly less difficult and do not always go into the same depths other mathematics
courses for people major in in mathematics or science fields. The two most common math
courses taken in this form are Business Calculus and Business Statistics. Examples used for
problems in these courses are usually real-life problems from the business world.
Mathematics is used in most aspects of daily life. Many of the top jobs such as business
consultants, computer consultants, airline pilots, company directors and a host of others require a
solid understanding of basic mathematics, and in some cases require a quite detailed knowledge
of mathematics. It also play important role in business, like Business mathematics by
commercial enterprises to record and manage business operations. Mathematics typically used in
commerce includes elementary arithmetic, such as fractions, decimals, and percentages,
elementary algebra, statistics and probability.

An example of the differences in course work from a business mathematics course and a regular
mathematics course would be calculus. In a regular calculus course, students would study
trigonometric functions. Business calculus would not study trigonometric functions because it
would be time-consuming and useless to most business students, except perhaps economics
majors. Economics majors who plan to continue economics in graduate school are strongly
encouraged to take regular calculus instead of business calculus, as well as linear algebra and
other advanced math courses. Other subjects typically covered in a business mathematics
curriculum include Matrix algebra linear programming.

Business Mathematics
Business Mathmetics Includes :
1. Principal - the initial amount of the debt, usually the price of the item purchased.
2. Interest Rate - the amount one will pay for the use of someone else's money. Usually
expressed as a percentage so that this amount can be expressed for any period of time.

3. Time- essentially the amount of time that will be taken to pay down (eliminate) the debt.
Usually expressed in years, but best understood as the number of and interval of payments, i.e.,
36 monthly payments.

Simple interest calculation follows the formula:

I= PRT, where
I=Interest
P=Principal
R= Interest Rate
T= Time.

The challenge: Belal decides to buy a car. The dealer gives him a price and tells him he can pay
on time as long as he makes 36 installments and agrees to pay six per cent interest. (6%). The
facts are:

Agreed price 18,000 for the car, taxes included.

3 years or 36 equal payments to pay out the debt.
Interest rate of 6%.
The first payment will occur 30 days after receiving the loan
A simple timeline will give you an idea of the question we need to address.

Understanding the simple effect of interest on an amount in terms of a given time period and
realizing that amortization is nothing more than a progressive summary of a series of simple
monthly debt calculations should provide a person with a better understanding of loans and
mortgages. The math is both simple and complex; calculating the periodic interest is simple but
finding the exact periodic payment to amortize the debt is complex.

By totaling the amount of interest and calculating the average, you can arrive at a simple
estimation of the payment required to amortize this debt. Averaging will differ from exact
because you are paying less than the actual calculated amount of interest for the early payments,
which would change the amount of the outstanding balance and therefore the amount of interest
calculated for the next period.

Conclusion:
Business Mathematics in management system is able to make more effective in some cases by
use of more advanced mathematics such as calculus, matrix algebra and linear programming.
Business organizations use mathematics in accounting, inventory management, marketing, sales
forecasting, financial analysis etc. Importance of Mathematics in Management System is a
scheme of Business Management.