Overview of Business Mathematics

INTRODUCTION 

For students studying business, Business Mathematics is a core subject. Business mathematics equips business students with an important tool for solving business problems in the area of finance, production, general management accounting, economics, and sales and marketing. 

Differential and Integral calculus is applied to achieve a wide range of application like optimization, calculation of regular and irregular areas. Moreover, differential and integral calculus is used for special aspects, such as curve sketching, maximization and minimization problems etc. 

WHY LEARN BUSINESS MATHEMATICS?

The objectives of Business Mathematics are to equip students with various tools and techniques. As a result, the students will be able to apply the techniques in solving various real-life business problems.

This course concerns numerous aspects regarding the mathematical processes and techniques currently used in the fields of business and finance. It includes a review of basic business math skills. Particular emphasis can be put on 

  • linear equations
  • system of linear equations
  • determinants
  • logarithmic and exponentials functions
  • percentages
  • interest
  • discounts
  • simple interest
  • compound interest
  • annuities
  • sinking fund
  • amortization
  • And, optimization problems.

Business mathematics is a branch of mathematics used by commercial enterprises to record and manage business operations. Commercial organizations may apply mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.

Business Mathematics is typically applied in commerce includes elementary arithmetic, elementary algebra , statistics and probability. 

Business management can be done more effectively in some cases by use of more advanced mathematics such as calculus, matrix algebra, and linear programming.

HIGH SCHOOL

Business mathematics, also known as commercial math or consumer math, is a group of practical subjects taught for commerce students, also used in everyday life. In schools, these subjects are often taught to students who are not planning a university education. 

In the United States, commercial math is offered in high schools and in schools that grant associate’s degrees; elsewhere they may be included under Business studies

The emphasis in these courses is put on computational skills and their practical application, with practical application being major.

A (U.S.) business math course might include an emphasis on elementary arithmetic, including fractions, decimals, and percentages.

Elementary algebra is often discussed as well, in matters regarding solving practical business problems. The practical applications of Elementary Algebra typically include:

  • checking accounts
  • price discounts 
  • markups and Markup
  • payroll calculations
  • simple and compound interest
  • consumer and business credit 
  • And mortgages and revenues.

UNIVERSITY LEVEL

UNDERGRADUATE

“Business Mathematics” concerns mathematics courses taken at an undergraduate level by business students. The two most common mathematics courses taken in this form are Business Calculus and Business Statistics. 

Programs often discuss a separate module on interest calculations. These courses usually emphasis on problems from the business world. And, the syllabus is circulated correspondingly. 

For example, whereas in a regular calculus course students would likely study trigonometric functions, courses here would cover broader concepts in this area. Correspondingly, these courses typically do not go into the same depth as standard courses, as observed in the mathematics or science fields. (Although see Bachelor of Science in Business Administration and Bachelor of Business Science.)

It is worth noting that economics majors, especially those who have plan to pursue graduate study in the field, could benefit from instead taking regular calculus, as well as linear algebra and other advanced math courses, especially real analysis .

POSTGRADUATE 

At the postgraduate level, there are two themes generalist management and finance programs business mathematics center on. The programs include quantitative topics which are foundational for the study in question – often exempting students with an appropriate background. 

These programs usually revolve around “interest mathematics” and statistics, both at the above level. MBA programs often also include basic operations research and may combine the topics as “quantitative analysis”; MSF programs may similarly cover applied econometrics.

More technical Masters in these areas are such as those who prefer to study in management science and quantitative finance. The concepts acheieved from these topics will entail a deeper, more theoretical study of operations research and econometrics. Moreover, these extend to further advanced topics such as mathematical optimization and stochastic calculus. 

These programs, however, do not include “Business mathematics”. Where mathematical economics is not mandatory, graduate economics programs often cover “quantitative techniques”. Quantitative techniques cover (applied) linear algebra and multivariate calculus.

These programs may include the above topics. This may occur, regardless, econometrics is usually a separate course, and is dealt with in depth.

BOTTOM LINE 

Business Mathematics is a crucial subject to learn for business student. The subject deals with important topics, involving solution of business and every day life problems. 

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