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. Mathematics typically used in commerce includes elementary arithmetic, elementary algebra, statistics and probability. Business management can be made more effective in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear programming. In academia, "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.
Importance of business mathematics in the field of business:
There are many factors involved in starting and operating a business. This is true regardless of the size of the business and regardless of whether it operates form a local location or worldwide on the Internet. Any business owner should have some training in various areas such as business math or make sure that that the right people are hired that have the required training.
The importance of business math can’t be overstated. It is not only necessary to keep good records of sales and expenditures so the owner knows where the business stands, but governments at all level require that proper tax records be kept. Records must be kept of sales taxes collected and owed, unemployment and social security taxes paid out and of course the income of the business. It is not necessary to have someone with a degree in accounting to handle these matters although that may be desirable for larger businesses.
Good training in business math can be obtained in a variety of ways. Most university business degree programs have business math courses as part of the requirements as do business schools that offer associate degrees. There are also good courses available from different sources on the Internet. Many of these courses are general business math courses, but there are also specific courses available for individual
Whatever the source, all businesses require someone that is thoroughly familiar with business math. This is necessary for the protection of the owner, the business, and even the employees. However, getting the training needed for someone does not have to be expensive or overly time consuming.
Some major importance of business mathematics in business:
Mathematics have been one of the primary elements of business. Since ancient times, when farmers had to count the animals in their possession and merchants had to have a clear picture of their goods' value. With the introduction of money as the universal legal tender, all goods acquired a numerical value, making math calculations even more important. Furthermore, in the competitive global market environment of today, businesses have to take advantage of every opportunity for profit, making frequent statistical market analyses a necessity.
The four basic math operations are essential to understand transactions and calculate profits and losses. On every transaction, from paying your grocery bill to making an investment, a certain amount of money is removed from one budget to another. Hence, a transaction always includes a subtraction from the buyer's budget and an addition to seller's budget. In cases of mass payments, such as during a monthly payday or when people buy tickets for a concert, you can multiply the value of individual tickets or paychecks by the number...