WHY MATHEMATICS IS MUST FOR BUSINESS

Introduction
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.
Mathematics is a universal language. Yes!! It's a language whereas students consider it as a big
problem itself. We would be lost to any point in history or right after evolution if it was't for the
subject of numbers. Let us try to understand that mathematics s not a problem but an answer to
all those who want to make money or look at their situation financially. Businesses are defined
by what they profit from their operations.

Interestingly, mathematics makes itself a symbiotic subject to finance, business, economics and
even

for

military

accreditations.

Economics

with

mathematics is

the

answer

for

many economists who will make assumption son the theory they would like top present on the
workings of the economy but ill realize their ambitions be met when they use numbers to explain
their relative thoughts.

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

arebranches of mathematics are used in everyday business and economics. Mathematics also
form an important part of accounting, and many accountancy companies prefer graduates with
joint degrees withmathematics 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 ofmathematics 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.
Mathematics is a universal language. Yes!! It's a language whereas students consider it as a big
problem itself. We would be lost to any point in history or right after evolution if it was't for the
subject of numbers. Let us try to understand that mathematics s not a problem but an answer to
all those who want to make money or look at their situation financially. Businesses are defined
by what they profit from their operations.
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 form
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, timeseries analysis, linear programming all are vital maths for business.
Mathematics is a universal language. Yes!! It's a language whereas students consider it as a big
problem itself. We would be lost to any point in history or right after evolution if it was't for the
subject of numbers. Let us try to understand that mathematics s not a problem but an answer to
all those who want to make money or look at their situation financially. Businesses are defined
by what they profit from their operations.
Interestingly, mathematics makes itself a symbiotic subject to finance, business, economics and
even for military accreditations. Economics with mathematics is the answer for
many economists who will make assumptions on the theory they would like top present on the

workings of the economy but ill realize their amb**itions be met when they use numbers to
explain their relative thoughts.
Businesses understand their motions in the market with the help of maths under conditions what
they need to achieve to be the masters or what they need to remain in the business at all.
Developing understanding that we are all connected to the mathematics will help us look beyond
the horizons of the stars.

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.