Mathematics have been one of the primary elements of business and economics 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.
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.
Another meaning of business mathematics, sometimes called commercial math or consumer math, is a group of practical subjects used in commerce and everyday life. The practical applications typically include checking accounts, price discounts, markups and markdowns, payroll calculations, simple and compound interest, consumer and business credit, and mortgages.
Importance of Mathematics in Business & Economics:
Mathematics is used in most aspects of daily life. Many of the top jobs such as business consultants,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.
The four basic math operations are essential to understand transactions and calculate profits and losses. On every
References: * Contemporery Math for business & Consumers-By Brechner, Robert. (2006) * The Role of mathematics in Business Decision -By Stephen F Keating – 1973 * The Role of Mathematics and Logic-By Kenneth Ewart Boulding-1971 * THE ROLE OF MATHEMATICS IN ECONOMICS-Journal of Political Economy, 56, 3 (June 1948): 187-199. * Heriot Watt University: Mathematics for Economics and Business -Lecture 1 * U.S. Small Business Administration: Market Analysis * emathzone: The Importance of Statistic