Final Assessment Paper in MMW PDF

NU LAGUNA
Km. 53 Pan Philippine National Highway,

Brgy. Milagrosa, Calamba City, Laguna 4027
16 September 2019
MARIVIC MIRANDO
SECRETARY OF THE OWNER
VIRGILIO-EDWINA HARDWARE
BRGY. SALASAD
MAGDALENA, LAGUNA
Warm greetings!
We the students of Bachelor of Science in Accountancy from NU Laguna will be doing an

investigation that will serve as our final requirement for the course, Mathematics in the
Modern World. The research will tackle mainly the uses of mathematics in different
problem situations encountered in the field of Business.
We would be privileged if we can interview you as a research participant. Please feel free
to contact us when you have any queries. Our contact details are as follow:
nicdaoal@students.nu-laguna.edu.ph
0916-950-7674
Thank you for your kind consideration.
Respectfully,
ABELEDA, Pauline Ellaine J. MALLONGA, Jaydelynn A.
BURBOS, Marielle Mae M. MIRANDA, Alyzza Flor S.
JAVIER, Kristel Ann Joy M. NICDAO, Allana Joyce L.
Noted:
LEANDRO R. DE LUNA
Professor, Mathematics in the Modern World
Approved:
JOSEFINA G. SAN MIGUEL, PhD

Director of Academics
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THE USES OF MATHEMATICS IN THE FIELD OF BUSINESS
Final Assessment
presented to Mr. Leandro R. De Luna
____________________
In final fulfillment
of the requirements in MATHEMATICS IN THE MODERN WORLD
____________________
By
ABELEDA, Pauline Ellaine J.
BURBOS, Marielle Mae T.
JAVIER, Kristel Ann Joy M.
MALLONGA, Jaydelynn A.
MIRANDA, Alyzza Flor S.
NICDAO, Allana Joyce L.
September 2019
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I. INTRODUCTION
Mathematics is the science that deals with the logic of shape, quantity and
arrangement. Math is everywhere and it surrounds us. It is the building block for
everything in our daily lives, including mobile devices, architecture (ancient and modern),
art, money, engineering, and even sports. Since the beginning of recorded history,
mathematic discovery has been at the forefront of every civilized society, and in use in
even the most primitive of cultures. The needs of math arose based on the wants of
society. The more complex a society, the more complex the mathematical needs.
Primitive tribes needed little more than the ability to count, but also relied on math to
calculate the position of the sun and the physics of hunting. (Horn, 2013)
The study of mathematics is essentially just studying number patterns, and in

business, this means knowing how to manipulate numbers and make meaning out of
large data sets. Mathematics plays a major role in business like Business Mathematics
which includes elementary arithmetic, such as fractions, decimals, and percentages,
elementary algebra, statistics and probability. 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.
According to Veer and Shukla (2009) in their research journal entitled Mathematics
– “The Queen of Commerce” nowadays, Business Management is using advanced
mathematics such as calculus matrix algebra and liner programming for practical
applications include checking accounts, forecasting the sales, price discounts, mark-ups,
mark-downs, payroll calculations, simple and compound interest, reducing wastage of
resources.
In the book Methods of Mathematical Finance of Karatzas and Shreve (1998), in

today’s era of globalization, mathematics is one of the primary elements and proved very
useful in the field of business. Without mathematics one feels helpless in every aspect of
business and commerce.
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For Kaur (2017) in his study entitled Role of Mathematics in Business and Commerce
– A Study, it is evident that mathematical methods and tools become crucial part of the
business organization. Application of mathematics becomes necessary from the
beginning i.e. from buying or estimating the cost of product to the end sales and earning
profits. Mathematical formulae help business to do financial analysis using ratios,
percentages, equations. The objective of minimizing cost and maximizing profit is
achieved through linear programming and calculus. The estimation of future returns and
profitability is done through probability distributions. It also helps in sale forecasting and
risk evaluation. Matrices play important role in variety of solutions for consumer
relationships and logistics management.
Business ownership requires more than skill in creating a product or talent at providing
a service. Having strong skills in mathematics especially in business means an individual
can analyze all the company's finances and make changes to save the company money
and time, and ultimately make a higher profit that would definitely lead to survival and
success of a business.
II. OBJECTIVES
The researchers aim to find out the uses of Mathematics in the field of business.
Specifically, this inquiry-based group research will answer the following:
1. In what ways do business owners use Mathematics in its respective functions in

the business: budgeting, product costing, decision making, profit measurement
and forecasting?
2. What is the importance of using Mathematics in operating their business?
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III. METHODOLOGY
This study made use of qualitative design with semi - structured interview as the main
data- gathering tool. The participants of the study were three (3), a business owner and
a representatives of their respective types of business. An interview question was used
as a data gathering tool. This focused on the role of the Mathematics in the business. To
capture the essence of the phenomenon under investigation, a letter of request was
addressed to the business representatives informing them of the nature of the research,
the topic to be discussed and extent of their participation.
After seeking their permission and willingness to participate, an appointment was

scheduled for a one-on-one interview based on their availability. To elicit natural
responses for questions, all the respondents were interviewed in locations of their own
choice and lasted for at least 15 to 20 minutes per respondent. The interview was
conducted in English and Filipino language.
The Interpretative Phenomenological Analysis (IPA) was used to examine the

gathered data. The following were the step-by-step procedures done. First, the
researchers translate, read, interpret and analyzed carefully the whole transcript
repeatedly until all observation and reflections about the participant’s experiences were
noted. Second, to formulate concise phrases that contain, the researcher drew initial
notes and emerging themes from the original transcript. Original transcription was used
to remain grounded in the conceptual understanding in the text.
Third, the emerging themes were examined and clustered according to

conceptual similarities to produce a structure that was helpful in highlighting emerging
ideas was the main task of this phrase. Fourth, a summary table of themes was produced
based on the results of repetitive processes in which different stages of analysis process
that the insights of the participants were preserved.
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In the conduct of the study, the researcher asked the consent of the business
representatives who were willing to be interviewed by the researcher. They were asked
to fill out the consent form for this purpose. All their responses have been recorded and
transcribed properly. They ensured that only the exact words of the owner and
representatives were transcribed. Their identities were also considered confidential and
they were assured of confidentiality. Likewise, all the references in this study were
properly cited.
IV. KEY FINDINGS
In this section, it describes and includes the presentation, analysis, and interpretation
of the data gathered by the researcher. The qualitative study aimed at providing
knowledge as what are the used of mathematics in the business. In particular, this section
is divided into eight discussions since eight themes have been derived from the study.
Table 1. Cluster 1. Usefulness of Mathematics in the Business

THEME SENTENCES PARTICIPANT
NO.
Mathematics is “Oo, useful ang mathematics P1
essential in kasi kailangan talaga yan sa
managing the negosyo. Kapag nawala yan
business. bagsak din ang business.”
“Oo. Kasi itong pagtitinda, P2
always naman yan, Math
talaga naman ang ginagamit,
odd and even. Kapag bumili ka
saken, itototal ko, then pag
sobra yung bayad mo,
syempre meron tayong
suklian, so talagang gamit ang
Math.”
“Yes, of course. Ahh.. Basic P3

Mathematics is the addition,
subtraction, division and
multiplication the basic
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operation is essential in the

business operation.”
where in accounting field we
are doing the business
language of ahh… translating
a numbers into business
decisions. So tulad lang ng
basic accounting formula
assets equals liabilities minus
owner’s equity that’s very
basic with that formula you
could assess if the business
is going up or going down if
you have a low asset ibig
sabihin may possibility na
Malaki ang liability mo. So
dun palang sa mga basic
formulas na yon
napakaessential na and sa
business decision makers or
the owners So the numbers
can be computed through
math.”
“So sobrang essential niya sa
business because for the
accounting field it’s the
language of the business
using math..”
Table 1 Cluster 1 provides the responses of the business owner and

representatives on how useful Mathematics in their business.
According to the three participants –

“Oo, useful ang mathematics kasi kailangan talaga yan sa negosyo. Kapag nawala
yan bagsak din ang business.”
“Oo. Kasi itong pagtitinda, always naman yan, Math talaga naman ang ginagamit,
odd and even. Kapag bumili ka saken, itototal ko, then pag sobra yung bayad mo,
syempre meron tayong suklian, so talagang gamit ang Math.”
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“Yes, of course. Ahh.. Basic Mathematics is the addition, subtraction, division and
multiplication the basic operation is essential in the business operation….where in
accounting field we are doing the business language of ahh… translating a numbers into
business decisions. So the numbers can be computed through math…. So tulad lang ng
basic accounting formula assets equals liabilities minus owner’s equity that’s very basic
with that formula you could assess if the business is going up or going down if you have
a low asset ibig sabihin may possibility na Malaki ang liability mo. So dun palang sa mga
basic formulas na yon napakaessential na and sa business decision makers or the
owners..So sobrang essential niya sa business because for the accounting field it’s the
language of the business using math..”
Through these responses, the general theme is “Mathematics is essential in

managing the business.”
According to educba.com, Mathematics is an important part of managing business.

Business and mathematics go hand in hand this is because business deals with money
and money encompasses everything. There is a need for everyone to manage money as
some point or the other to take decisions which requires everyone to know mathematics.
Business mathematics is used by commercial enterprises to record and manage business
operations. Commercial organizations use mathematics in accounting, inventory
management, marketing, sales forecasting, and financial analysis. It helps you know the
financial formulas, fractions; measurements involved in interest calculation, hire rates,
salary calculation, tax calculation etc. which help complete business tasks efficiently.
Business mathematics also includes statistics and provides solution to business
problems.
Table 2. Cluster 2. Mathematics in Budgeting

NO.
Recording of the “Pinaghahati-hati ko na lang P1
different din. Kapag kulang, nag-
Mathematical Data aallocate ng isang budget don.
Kapag meron kailangan
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parang kikita ka ron, i-allocate

mo muna para don tapos
ibabalik mo ulit kapag kumita
na. halimbawa kuryente,
allocate mo doon sa
pangstock muna kasi
nashoshort tayo ngayon.
Paikot-ikot lang.”
“Binabudget siya kase tulad P2
nung sa tao, unang una yung
puhunan, kung ano yung mga
stock natin ngayon then kung
ano yung mabibili ni customer,
ililista naten, ijujutdown naten
siya kung ano na yung mga
kulang saten.”
“In budgeting or forecasting we P3
need historical data so using
the historical data we could
make a format. So gamit yung
lumang data or the previous
months date. ? Kung ikaw ay
manufacturing company that is
coming from your sale, which
is kapag nirecord natin that’s
debit AR normally in
manufacturing company di
tayo nakakareceive agad ng
cash kase tayo ay nagiging
supplier din ng ibang
manufacturing company so we
are reporting that through AR.
Ahh.. ayon kapag alam mo
kunware lang mas maiksi yung
terms ng collection mo or mas
mahaba pala 60 days terms
ang collection mo pero ang
payable ko is may 45 days, 30
days if kulang yung cash mo or
kunware hindi tama yung
timing mo that’s the time you
assess that you need to loan
or you need an extra fund
getting an extra fund by ahh..
calling your investors or your
partners or partnership na
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kailangan nila mag add ng

fund or you could make a loan
in the bank.”
As for Table 2 Cluster 2 on the Mathematics in Budgeting, provides the responses

of the participants -
“Pinaghahati-hati ko na lang din. Kapag kulang, nag-aallocate ng isang budget

don. Kapag meron kailangan parang kikita ka ron, i-allocate mo muna para don tapos
ibabalik mo ulit kapag kumita na. halimbawa kuryente, allocate mo doon sa pangstock
muna kasi nashoshort tayo ngayon. Paikot-ikot lang.”
“Binabudget siya kase tulad nung sa tao, unang una yung puhunan, kung ano yung
mga stock natin ngayon then kung ano yung mabibili ni customer, ililista naten, ijujutdown
naten siya kung ano na yung mga kulang saten.”
“In budgeting or forecasting we need historical data so using the historical data we
could make a format. So gamit yung lumang data or the previous months date. ? Kung
ikaw ay manufacturing company that is coming from your sale, which is kapag nirecord
natin that’s debit AR normally in manufacturing company di tayo nakakareceive agad ng
cash kase tayo ay nagiging supplier din ng ibang manufacturing company so we are
reporting that through AR. Ahh.. ayon kapag alam mo kunware lang mas maiksi yung
terms ng collection mo or mas mahaba pala 60 days terms ang collection mo pero ang
payable ko is may 45 days, 30 days if kulang yung cash mo or kunware hindi tama yung
timing mo that’s the time you assess that you need to loan or you need an extra fund
getting an extra fund by ahh.. calling your investors or your partners or partnership na
kailangan nila mag add ng fund or you could make a loan in the bank.”
For this table, the theme “Recording of the different Mathematical Data” emerged.
According to Banks (2018), budgeting identifies current available capital, provides
an estimate of expenditure and anticipates incoming revenue. By referring to the budget
businesses can measure performance against expenditure and ensure that resources are
available for initiatives that support business growth and development. It enables the
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business owner to concentrate on cash flow, reducing costs, improving profits and
increasing returns on investment. Budgeting is the basis for all business success. It helps
with both planning and control of the finances of the business. If there is no control over
spending, planning is futile and if there is no planning there are no business objectives to
achieve.
Table 3. Cluster 3. Mathematics in Product Costing

NO.
Application of Basic “Additional. Additional dun sa
Operations in syempre kung ano yung P2
Mathematics to puhunan. Mag aadd tayo para
Formulate a Formula magkaroon ng tubo. Tapos
in Product Costing. syempre para malaman mo rin
yung puhunan mo, syempre
may puhunan ka tapos may
iaadd kang tubo, pag bumili si
customer, dun mo makukuha
kung magkano yung cost.”
“So meron tayong tinatawag P3

na we need raw materials, we
need cost ahh.. we need cost
of goods sold ang tawag don.
So una kailangan malaman
mo muna ang kung pano ko
mapoproduce ang product so
may mga cost yon so yung raw
materials yung chips syempre
hindi siya mabubuo ng isang
buuan lang so meron kang
labor may kuryente ka so you
have the utilities. Para
ginagamit ng isang business
owner yung mathematics if
kailangan nila makuha yung
profit margin nila don sa
expenses nila so they need to
compute first magkano yung
aking actual cost or the
expenses. Pag nacompute nila
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yon sakanila papatungan

ganon yung term diba or
paano tayo kikita so they
would use ayon… summation
lang yon addition summation
of expenses and then
cocompute sila magkano ba
kita ko 10%, 20% yung
acceptable in the market
because may competitors ka
den kung itataas mo presyo
mo at hindi ka naman kikita
lugi kapa din. So computing
their cost of sale or cost of
goods manufactured tinitignan
nila yung margins tsaka sila
nagpapatong. Tsaka tayo
nagkakaron ng selling price..
So yung math binibigyan ng
tool yung owners kung maii-
scale niya kase yung selling
price ko less the cost of sale
kung kumikita paba ako ng net
income or ng loss. So through
that pag nalaman nila kung
tama bang itaas ko pa yung
presyo ko. Ganon lang.”
Table 3 Cluster 3 provides the responses of the business representatives on how

they use Mathematics in costing their products.
According to the participants –
“Additional. Additional dun sa syempre kung ano yung puhunan. Mag aadd tayo
para magkaroon ng tubo. Tapos syempre para malaman mo rin yung puhunan mo,
syempre may puhunan ka tapos may iaadd kang tubo, pag bumili si customer, dun mo
makukuha kung magkano yung cost.”
“So meron tayong tinatawag na we need raw materials, we need cost ahh.. we
need cost of goods sold ang tawag don. So una kailangan malaman mo muna ang kung
pano ko mapoproduce ang product so may mga cost yon so yung raw materials yung
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chips syempre hindi siya mabubuo ng isang buuan lang so meron kang labor may
kuryente ka so you have the utilities. Para ginagamit ng isang business owner yung
mathematics if kailangan nila makuha yung profit margin nila don sa expenses nila so
they need to compute first magkano yung aking actual cost or the expenses. Pag
nacompute nila yon sakanila papatungan ganon yung term diba or paano tayo kikita so
they would use ayon… summation lang yon addition summation of expenses and then
cocompute sila magkano ba kita ko 10%, 20% yung acceptable in the market because
may competitors ka den kung itataas mo presyo mo at hindi ka naman kikita lugi kapa
din. So computing their cost of sale or cost of goods manufactured tinitignan nila yung
margins tsaka sila nagpapatong. Tsaka tayo nagkakaron ng selling price.. So yung math
binibigyan ng tool yung owners kung maii-scale niya kase yung selling price ko less the
cost of sale kung kumikita paba ako ng net income or ng loss. So through that pag
nalaman nila kung tama bang itaas ko pa yung presyo ko. Ganon lang”
Through these responses, the general theme is “Application of Basic Operations

in Mathematics to Formulate a Formula in Product Costing.”
When you have successfully determined the costs, the next task is to price the
products correctly so that it generates right amount of cash flows for future requirements
of the business. Charging the correct selling price would ensure that the product remains
profitable. According to shopfactory.com, the most essential part of pricing is
understanding the math. Deciding how to price a product can mean the difference
between success and failure for your small business. Price items too high and no one will
buy, too low and you’ll struggle or even lose money. Pricing strategies are a mix of art
and science, but the whole process can be streamlined into 3 primary factors covered
below. (Fabregas, 2017)
Moreover, Fabregas (2017) pointed out three factors about product pricing. First
one is understanding the basic terms and Math of product pricing such as Markup and
Product Margin. Markup is the amount you add to your product cost to get your selling
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price while Profit margin is a percentage that’s figured on your selling price less the cost
of your product but just a note that it’s important to understand that your markup
percentage and profit margin percentage are not the same and that the math to get to
each number is different. Second factor is knowing which pricing strategies apply to your
industry can simplify how you price a product, minimize the math you need to do, and
give you a window into your competitors’ pricing strategies (e.g. keystone pricing, MSRP,
discount pricing). Lastly, always make sure that your product pricing strategy is profitable.
The pricing strategies covered above offer good guidance on how to price a
product. But you also have to ensure that the strategy, or mix of strategies, that you use
result in enough income to cover your business’s overhead expenses and leave you some
profit to fuel growth.
Table 4. Cluster 4. Mathematics in Decision Making

NO.
Mathematics “Oo, syempre. Kailangan P1
influencing the talaga ang magandang
Decision-making desisyon diyan kasi kapag
process of the hindi diyan bumabagsak din
Business. ang negosyo.”
“Always, kase syempre kung P2
kumikita tayo or lugi tayo sa
isang product. Syempre meron
tayong pagaaudit. Ito yung
puhunan naten, eto yung cost
naten, eto yung binenta naten,
dun mo malalaman kung yung
puhunan mo then yung sales
mo, so makikita mo don kung
magkano tinubo mo, yung
profit mo.”
“Mathematics ahm sa P3
business owners, ang
kailangan lang naman nila
makita is kung kikita yung
company. Kung yung kanilang
net income is increasing or
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nadadagdagan iyon, that's the

time that it is favorable to
them, so maganda yung ibig
sabihin non. Kapag
nababawasan siya o isa pa,
hindi siya maganda. Yung
math kasi para siyang tool,
iaadd mo yung expenses mo,
you will divide it in the factors
afftecting the market, yung risk
in the volatility tapos doon mo
macocompute kung ikaw ba ay
pwede pang tumuloy or kumita
pa. Doon pumapasok si math,
kasi binibigay sa iyo ni math
yung glimpse ng pwedeng
mangyari sa future.”
Table 4 Cluster 4 provides the responses of the business owner and

representatives on how they apply Mathematics in decision – making.
For the three participants –
“Oo, syempre. Kailangan talaga ang magandang desisyon diyan kasi kapag hindi
diyan bumabagsak din ang negosyo.”
“Always, kase syempre kung kumikita tayo or lugi tayo sa isang product. Syempre
meron tayong pagaaudit. Ito yung puhunan naten, eto yung cost naten, eto yung binenta
naten, dun mo malalaman kung yung puhunan mo then yung sales mo, so makikita mo
don kung magkano tinubo mo, yung profit mo.”
“Mathematics ahm sa business owners, ang kailangan lang naman nila makita is
kung kikita yung company. Kung yung kanilang net income is increasing or
nadadagdagan iyon, that's the time that it is favorable to them, so maganda yung ibig
sabihin non. Kapag nababawasan siya o isa pa, hindi siya maganda. Yung math kasi
para siyang tool, iaadd mo yung expenses mo, you will divide it in the factors afftecting
the market, yung risk in the volatility tapos doon mo macocompute kung ikaw ba ay pwede
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pang tumuloy or kumita pa. Doon pumapasok si math, kasi binibigay sa iyo ni math yung
glimpse ng pwedeng mangyari sa future.”
Through these responses, the general theme is “Mathematics influencing the

Decision-making process of the Business.”
Davis (1996) wrote on his essay entitled Mathematics and Decision Making that
decisions shape our lives. Mathematics rationalizes the sifting of information and the
balancing of alternatives inherent in any decision. Mathematical models underlie
computer programs that support decision making, while bringing order and understanding
to the overwhelming flow of data computers produce. Mathematics serves to evaluate
and improve the quality of information in the face of uncertainty, to present and clarify
options, to model available alternatives and their consequences, and even to control the
smaller decisions necessary to reach a larger goal.
For Arnold (2019), Mathematics is used in almost every aspect of life. It also plays
an important role in business decision making. Business mathematics, a subject course
in Mathematics, is used to record and manage business operations. Many Business
activities like accounting, financial analysis, sales etc. are done by using business
mathematics. When we talk about decision making for business, mathematics plays an
important role in it. A businessman must take thousands of decisions every day for his
business, therefore, mathematics helps in rationalizing the information and it gives the
accurate results inherent for any decision making.
The use of business mathematics assists you to make an important decision based
on numerical and measurable scale and not on personal belief and opinions. The
decisions made using statistical studies are more productive.
The decision - making task comes with so many responsibilities. It is a critical step
which makes a huge impact in shaping the future of the organization. It is important to
make effective decisions that make development and growth of the business.
Mathematical data and calculation evaluate the quality of information that is used for
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making decisions. It can be used for making both big as well as small decisions. In today’s
world, most of the organizations use business mathematics for decision making because
it is becoming very popular. Making decisions for business has become all about
numerical exercise.
Table 5. Cluster 5. Mathematics in Profit Measurement

NO.
Incorporating “Usually naman naaano natin P2
Mathematics in the talaga siya lahat eh. Kase
Basic accounting syempre may BIR diba, may
concept for profit accounting din kame, so dun
measurement sa accounting dun mo
malalaman pag monthly
syempre magbibigay ka
sakanila ng monthly mong
puhunan and monthly sales.
Dun mo makikita agad kung
magkano kinita mo, kung
kumita ka or hindi this month.
Meron kaming monthly,
quarterly, at annually. Lahat
yon nakukuha natin yon,
naaaudit.”
“Iyon, sa profits kasi ay madali P3
lang katulad ng sales less cost
of sales that is the profit or the
net income. So basic lang,
yung basic accounting concept
kung paano nila nakukuha.
And then sometimes they're
making comparisons.. By that
time, using the evision or the
increase decrease factor ng
math, yung formulas nila,
pwede nilang tanungin yung
operations, ano ba ang
nangyari? Bakit mas maliit
yung kita ko this month sa last
month? May nangyari ba na,
nasiraan ba tayo ng produkto?
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or mayroon bang mga

expenses na tumaas? So
they're using the comparative
analysis by a month to month
performance.”
Table 5 Cluster 5 provides the responses of the business representatives on how

they use Mathematics in measuring their profits.
“Usually naman naaano natin talaga siya lahat eh. Kase syempre may BIR diba,
may accounting din kame, so dun sa accounting dun mo malalaman pag monthly
syempre magbibigay ka sakanila ng monthly mong puhunan and monthly sales. Dun mo
makikita agad kung magkano kinita mo, kung kumita ka or hindi this month. Meron kaming
monthly, quarterly, at annually. Lahat yon nakukuha natin yon, naaaudit.”
“Iyon, sa profits kasi ay madali lang katulad ng sales less cost of sales that is the
profit or the net income. So basic lang, yung basic accounting concept kung paano nila
nakukuha. And then sometimes they're making comparisons.. By that time, using the
evision or the increase decrease factor ng math, yung formulas nila, pwede nilang
tanungin yung operations, ano ba ang nangyari? Bakit mas maliit yung kita ko this month
sa last month? May nangyari ba na, nasiraan ba tayo ng produkto? or mayroon bang mga
expenses na tumaas? So they're using the comparative analysis by a month to month
performance.”
Through these responses, the general theme is “Incorporating Mathematics in the

Basic accounting concept for profit measurement.”
According to Deeb (2019), 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. In measuring the profits, determine first 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
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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.
For tutor2u.net, Profit is perhaps the most important concept in business, so it is

vital to understand what profit is, how it is calculated and why it is important. A good
definition of profit is "the reward or return for taking risks and making investments".
For most businesses, making a profit is a key business objective. You also need
to appreciate that profit is also the most important source of cash flow and finance for a
business. Profit, like the positive cash flows that it helps create, can be seen as the
lifeblood of a successful and valuable business. A business that fails to achieve profit and
instead suffers sustained losses will struggle to survive. In Elkington's Triple Bottom Line
model, for example, you'll discover that Profit is seen as part of a group of three key
performance indicators for business activity alongside People and Planet.
Table 6. Cluster 6. Mathematics in Forecasting

NO.
Mathematics in “Kasi kailangan makaipon ka. P1
Forecasting Using Yung naipon mo halimbawa,
Math in determining etong taon na to nabudget
the historical cost for namin. Nalagyan ngamin yung
projection mga dapat lagyan kumbaga,
naiano mo na lahat pati yung
permit mo may natira ka pa.
Yung natira, yun ang
inaallocate naming sa
susunod naming negosyo.
Tulad ng sobrang kita naming
dito, yun ang ginamt naming
sa pagpatayo. Dati naman
bookbinding, e kaso hindi
masyado yung bookbing,
NU LAGUNA
kulang rin sa tauhan.Subok ulit

ng iba. Sinarado na namin
yon. Nagtayo ulit kami ng
tracking ganyan. Basta hindi
yung kung ito, hindi lang ito
ang itatayo ko. Hindi kasi
kapag bumagsak yan, sa
market bumagsak yan sabay
sabay babagsak yung naitayo
mong negosyo diba? Kaya
kailangan iba-iba yung
negosyo mo. Napag aralan
lang naming yon nung huli na.
Kasi nakita namin, dati diba
kapag may pagkain, kapag
meron ka nito, ito ulit itatabi
mo. Ito ulit ibabranch mo sa
ganitong lugar sa ganon, sa
ganon. Kaya lang tulad
ngayon kung nagbranch kami
marami, nako biglang dami ng
milktea kahit saan, nationwide.
Kahit sa SM dati Dakasi lang
ngayon madami na diba?
Kaya kailangan meron ka
pang negosyo na magsasalo
kapag humihina yung isa
mong negosyo. “
“Ah katulad din siya sa P3

budgeting, nakakapagproject
ka gamit yung historical cost,
kadalasan ng ginagamit na
pinakamadaling umm
increment is the ten percent,
may inflation rate tayo diba,
familiar kayo don? So, ina-
assess natin kung next year
tataas ba yung presyo, kapag
tumaas yung presyo natin, it
means tataas yung cost ko, by
that time na tumaas ang cost
ko is kailangan ko bang
magbago ng selling price or
kailangan ko bang sumabay,
so by that dun na lang
NU LAGUNA
magcocompute. Sa
manufacturing, if we are doing
the budget or the forecast for
the next year, we’re doing that
in the fourth quarter because
we have the data of the first to
third quarter, so using the data
of the first to third quarter
performance, dun tayo
nagbebase, kunyare, repairs
and maintenance expense,
kadalasan ang thinking ng
business owners is to lessen
the cost, ang budgeting natin
is nililimit natin ang pag gastos
so tinitingnan natin saang
margin mo ba pwedeng
bawasan yung repairs and
maintenance cost mo so dun ti
magtitipid yung company so
lagi niyong tatandaan kapag
nagfoforecast ang business
owners is to have more profits
hindi sila nag iisip ng decisions
to umm have more expenses
so doon sila nakabase or dun
sila nakafocus.”
Table 6 Cluster 6 provides the responses of the business owner and representative
in the use Mathematics in projecting their sales and expenses.
“Kasi kailangan makaipon ka. Yung naipon mo halimbawa, etong taon na to

nabudget namin. Nalagyan ngamin yung mga dapat lagyan kumbaga, naiano mo na lahat
pati yung permit mo may natira ka pa. Yung natira, yun ang inaallocate naming sa
susunod naming negosyo.”
“Ah katulad din siya sa budgeting, nakakapagproject ka gamit yung historical cost,
kadalasan ng ginagamit na pinakamadaling umm increment is the ten percent, may
inflation rate tayo diba, familiar kayo don? So, ina-assess natin kung next year tataas ba
NU LAGUNA
yung presyo, kapag tumaas yung presyo natin, it means tataas yung cost ko, by that time
na tumaas ang cost ko is kailangan ko bang magbago ng selling price or kailangan ko
bang sumabay, so by that dun na lang magcocompute.”
Through these responses, the general theme is “Mathematics in Forecasting Using

Math in determining the historical cost for projection.”
According to Tuovila (2019), Forecasting is a technique that uses historical data

as inputs to make informed estimates that are predictive in determining the direction of
future trends. Businesses utilize forecasting to determine how to allocate their budgets or
plan for anticipated expenses for an upcoming period of time. This is typically based on
the projected demand for the goods and services offered and Berry (2012) stated that
with one simple mathematical formula, plus some creative thinking, you can do that for
your own forecasts.
Table 7. Cluster 7. Mathematics in Financial Model

NO.
Integrating “Meron. Meron kaming P2
Mathematics in the balance sheet, meron kaming
Financial Statements sales journal, kung isusuma
as the main character mo siya lahat, meron kame
(numbers) every year, meron tayong ITR,
sa ITR nakalagay lahat kung
magkano yung kinita mo, yung
puhunan mo, yung gastos mo,
kung magkano yung natira
sayo. Sa business, kailangan
talaga to kaya meron kami
nung lahat ng financial
statements.”
“Of course, umm, in a P3
manufacturing firm, umm we
need to comply to the IFRS,
so we need to submit
statement of financial position
which is the balance sheet of
course, the income statement
or the comprehensive income
NU LAGUNA
because that statements are

used by the owners and
potential investors or
creditors kung ikaw ba ay
dapat pang investan lalo na
kung publicly traded ka, sa
mga creditors, sa mga
bangko kailangan ba kitang
pautangin madali yung
makita eh, kung makikita nila
na ang income mo ay pataas,
syempre pauutangin ka.”
Table 7 Cluster 7 provides the responses of the business representatives on the

use of Mathematics in financial model.
“Meron. Meron kaming balance sheet, meron kaming sales journal, kung isusuma
mo siya lahat, meron kame every year, meron tayong ITR, sa ITR nakalagay lahat kung
magkano yung kinita mo, yung puhunan mo, yung gastos mo, kung magkano yung natira
sayo. Sa business, kailangan talaga to kaya meron kami nung lahat ng financial
statements.”
“Of course, umm, in a manufacturing firm, umm we need to comply to the IFRS,
so we need to submit statement of financial position which is the balance sheet of course,
the income statement or the comprehensive income because that statements are used
by the owners and potential investors or creditors kung ikaw ba ay dapat pang investan
lalo na kung publicly traded ka, sa mga creditors, sa mga bangko kailangan ba kitang
pautangin madali yung makita eh, kung makikita nila na ang income mo ay pataas,
syempre pauutangin ka.”
Through these responses, the general theme is “Integrating Mathematics in the

Financial Statements as the main character (numbers).”
NU LAGUNA
Mathematics seeks to summarize the world by using numbers and models.

Typically, accounting is used to summarize businesses or business activities. Thus, the
tools of accounting are the same tools of mathematics, just applied to summarize and to
understand businesses or business activities. Companies use basic financial statements
to communicate a company's financial information to the parties other than the company's
directors and managers. Each stakeholder can observe the symbolic representation of
the company through the financial statements to manipulate those symbols using the
appropriate rules, and then convert the resulting symbols into a real-world conclusion.
Financial information comes in many forms, but the most important are the Financial
Statements. They summarize relevant financial information in a format that is useful in
making important business decisions. (wyzant.com)
Table 8. Cluster 8. Importance of Mathematics in the Business

NO.
Mathematics is a “Sipag talaga ma’am. Sa math P1
lifeline of a Business daw, ang math importante
talaga yan kasi kapag wala
kang math, Sa loob nga ng
isang taon hindi mo maaano
kung may kinita ka. Di mo
makikita. Di mo alam yung
pag-compute compute ng
kinita mo at ginastos.
Bubudget-in mo lang sa loob
ng isang taon, wala ka palang
kinita kasi hindi mo naano
yung mga, natuos yung mga
expenses sa net mo.”
“Sobrang importante kase sa P2

pagmeasure mo pa lang ng
kahit ano everyday, everyday
natin siyang kailangan. Unang
una sa sales, pag
magbebenta ka sa tao
syempre yung Mathematics
andon na agad.
NU LAGUNA
Magcocompute ka ng binili
niya, then magsusukli ka, then
sa pagsahod ng mga tauhan
ganon din, sa pamimili mo
galling sa puhunan, pag
dumating yung ahente, yung
mga collections, talagang
kailangan. Everyday talaga
gamit ang math, hindi
pwedeng hindi. Also,
makakatulong din to para
malaman kung kumita tayo, or
lugi tayo.”
“I think umm for the P3
accounting field ha this is our
language we are using math
to make data as an
information to create the
figures or the numbers into
something essential that will
influence the decisions of the
business owners, the
business owners and the
users of the FS ahh through
the math umm we can
compute if the business is
going umm ahh going or it’s
becoming ahh palubog na or
hindi na sila kikita so using
Math we could transform the
numbers into languages yun
ang ibig sabihin nun, it’s very
essential kung wala yan
walang sistema ang isang
umm company.”
Table 8 Cluster 8, provides the responses of the business owner and

representatives on the importance of Mathematics in the Business
According to the three participants –

NU LAGUNA
“Sipag talaga ma’am. Sa math daw, ang math importante talaga yan kasi kapag
wala kang math, Sa loob nga ng isang taon hindi mo maaano kung may kinita ka. Di mo
makikita. Di mo alam yung pag-compute compute ng kinita mo at ginastos. Bubudget-in
mo lang sa loob ng isang taon, wala ka palang kinita kasi hindi mo naano yung mga,
natuos yung mga expenses sa net mo.”
“Sobrang importante kase sa pagmeasure mo pa lang ng kahit ano everyday,

everyday natin siyang kailangan. Unang una sa sales, pag magbebenta ka sa tao
syempre yung Mathematics andon na agad. Magcocompute ka ng binili niya, then
magsusukli ka, then sa pagsahod ng mga tauhan ganon din, sa pamimili mo galling sa
puhunan, pag dumating yung ahente, yung mga collections, talagang kailangan.
Everyday talaga gamit ang math, hindi pwedeng hindi. Also, makakatulong din to para
malaman kung kumita tayo, or lugi tayo.”
“I think umm for the accounting field ha this is our language we are using math to
make data as an information to create the figures or the numbers into something essential
that will influence the decisions of the business owners, the business owners and the
users of the FS ahh through the math umm we can compute if the business is going umm
ahh going or it’s becoming ahh palubog na or hindi na sila kikita so using Math we could
transform the numbers into languages yun ang ibig sabihin nun, it’s very essential kung
wala yan walang sistema ang isang umm company.”
Through these responses, the general theme is “Mathematics is a lifeline of a

Business”.
According to Partha Gharami (n.d.) on his article about the importance of Business
Mathematics in Management, Mathematics is an important subject and knowledge of it
enhances a person's reasoning, problem-solving skills, and in general, the ability to think.
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
NU LAGUNA
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.
As cited in educba.com, Business is always surrounded with challenges which

need to be dealt with in a proper fashion so that they do not arise in future. These
problems that occur on a daily basis can be effectively solved with the help of
mathematical models. Hence mathematics not only helps to calculate but also analyze
business problems and work upon them. Learning and using business mathematics
enables a person to think out of the box, sharpens one’s thinking and helps in precisely
formulating and structuring relationships.
V. CONCLUSIONS AND IMPLICATIONS
Based on the results of the qualitative inquiry, the researchers have drawn that the
uses of Mathematics have a huge impact on the business. The use of basic mathematics
helps the business in determining the profitability of the business, as well as managing
the business through helping in making economic decisions. It is also noted that
mathematics is very useful in budgeting, product costing, decision-making, profit
measurement, and forecasting. Determining all of these help the owners in maintaining
the stability of the business and these are vital in operating the business. With this, having
skills in mathematics can help an individual to analyze the company’s finances. This will
be useful in influencing the decisions of the owners whether the business will continue its
operation or not especially in a competitive market economy.
Mathematics is very essential in the business where it is used to calculate, analyze

business problems and helps in making decisions. Business owners should know the
uses of Mathematics in its respective functions in the business because it will help them
more appreciate the use and importance of mathematics for them to maintain profitable
operations and accurate keeping of records.
NU LAGUNA
This will also result to a more efficient and effective way of operating a business,
if business owners have an adequate to in-depth knowledge about these business
concepts – the budgeting, product costing, profit measurement, decision-making and
forecasting through studying, reading business books and attending business classes,
that is why it is a need for it as this will enhance more of their skills in managing a
business. For this reason, the business owners will value more the importance of
Mathematics in the business field, if they already fully understand the ins and outs of
Mathematics, the cycle of how to do it in a business perspective and what will be its result
to the business after applying those concepts in a systematic way.
VI. REFERENCES
Arnold, J. (2019). Role of Business Mathematics in Decision Making Process. Retrieved
September 14, 2019 from https://www.bookmyessay.com/role-of-business-

mathematics-in-decision-making-process/
Basic Financial Statements. (n.d.). Retrieved September 14, 2019 from
https://www.wyzant.com/resources/lessons/accounting/financial-statements
Banks, K. (2018). The Importance of Budgeting the Business. Retrieved September 14,
2019 from https://wlf.com.au/importance-budgeting-business/
Berry, T. (2012). Use Simple Math to Forecast Sales Growth. Retrieved from
https://www.americanexpress.com/en-us/business/trends-and-
insights/articles/use-simple-math-to-forecast-sales-growth/
Davis, P. (1996). Mathematics and Decision Making. Worcester Polytechnic Institute.
Retrieved September 14, 2019 from

http://www.mathaware.org/mam/96/resources/essay96.html
NU LAGUNA
Deeb, C. (2019). The Importance of Basic Math in Business. Retrieved Septembe 14,
2019 from https://smallbusiness.chron.com/importance-basic-math-business-

41097.html
El Nemar, S. (2013). The vital role of mathematics in business. Vinculum, Vol. 50, No. 4,
18-19. Retrieved September 15, 2019 from

https://search.informit.com.au/documentSummary;dn=617890515908046;res=IE
LAPA;type=pdf
Fabregas, K. (2017). How to Price a Product – The Ultimate Product Pricing Strategy
Guide for Small Businesses. Retrieved September 14, 2019 from

https://fitsmallbusiness.com/product-pricing/
Gharami, P. (n.d.). Assignment on Importance of Business Mathematics in Management
System What is Importance of Business Mathematics in Management. (n.d.).

Retrieved September 15, 2019 from
https://www.academia.edu/12038651/Assignment_on_Importance_of_Business_
Mathematics_in_Management_System_What_is_Importance_of_Business_Math
ematics_in_Management
Horn, E.J. (2013). What is Mathematics? Retrieved September 6, 2019 from

https://www.livescience.com/38936-mathematics.html
Karatzas, I., and Shreve, S. E. (1998). Methods of Mathematical Finance. Springer (Vol.
39)
Kaur, S.P. (2017). Role of Mathematics in Business and Commerce – A Study. Retrieved
September 6, 2019 from http://data.conferenceworld.in/SGTB/P726-729.pdf
NU LAGUNA
Measurement and Importance of Profit. (n.d.). Retrieved September 14, 2019 from
https://www.tutor2u.net/business/reference/measurement-importance-of-profit
Product Pricing made easy: the math + tactics you need to know. (n.d.). Retrieved
September 14, 2019 from https://shopfactory.com/contents/en-us/p1361_product-

pricing-made-easy.html
Veer, D., Shukla. P. (2009). Mathematics - “The Queen of Commerce”. Shodh, Samiksha
aur Mulyankan, 2(6), 2009, 819-820
The importance of maths in everyday life. (2015). Retrived September 15, 2019 from
https://timesofindia.indiatimes.com/city/guwahati/The-importance-of-maths-in-
everyday-life/articleshow/48323205.cms
The Role of Mathematics for Business Studies. (n.d.). Retrieved September 6, 2019 from
http://ocw.bib.upct.es/pluginfile.php/8765/mod_resource/content/1/The_role_of_
Mathematics_in_Business_studies.pdf
Tuovila, A. (2019). Forecasting. Retrieved from

https://www.investopedia.com/terms/f/forecasting.asp
What is Business Mathematics – Overview of Business Mathematics. (n.d.). Retrieved

September 14, 2019 from https://www.educba.com/what-is-business-
mathematics/
What is the Role of Mathematics in Business Management? (n.d.). Retrieved September

6, 2019 from https://www.reference.com/business-finance/role-mathematics-
business-management-144b123703e60b

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NU LAGUNA

Km. 53 Pan Philippine National Highway,

We the students of Bachelor of Science in Accountancy from NU Laguna will be doing an

Thank you for your kind consideration.

ABELEDA, Pauline Ellaine J. MALLONGA, Jaydelynn A.

BURBOS, Marielle Mae M. MIRANDA, Alyzza Flor S.

JAVIER, Kristel Ann Joy M. NICDAO, Allana Joyce L.

JOSEFINA G. SAN MIGUEL, PhD

THE USES OF MATHEMATICS IN THE FIELD OF BUSINESS

ABELEDA, Pauline Ellaine J.

BURBOS, Marielle Mae T.

JAVIER, Kristel Ann Joy M.

MIRANDA, Alyzza Flor S.

NICDAO, Allana Joyce L.

The study of mathematics is essentially just studying number patterns, and in

In the book Methods of Mathematical Finance of Karatzas and Shreve (1998), in

1. In what ways do business owners use Mathematics in its respective functions in

After seeking their permission and willingness to participate, an appointment was

The Interpretative Phenomenological Analysis (IPA) was used to examine the

Third, the emerging themes were examined and clustered according to

IV. KEY FINDINGS

Table 1. Cluster 1. Usefulness of Mathematics in the Business

“Yes, of course. Ahh.. Basic P3

operation is essential in the

Table 1 Cluster 1 provides the responses of the business owner and

According to the three participants –

Through these responses, the general theme is “Mathematics is essential in

According to educba.com, Mathematics is an important part of managing business.

Table 2. Cluster 2. Mathematics in Budgeting

parang kikita ka ron, i-allocate

kailangan nila mag add ng

As for Table 2 Cluster 2 on the Mathematics in Budgeting, provides the responses

“Pinaghahati-hati ko na lang din. Kapag kulang, nag-aallocate ng isang budget

Table 3. Cluster 3. Mathematics in Product Costing

“So meron tayong tinatawag P3

yon sakanila papatungan

Table 3 Cluster 3 provides the responses of the business representatives on how

According to the participants –

Through these responses, the general theme is “Application of Basic Operations

Table 4. Cluster 4. Mathematics in Decision Making

nadadagdagan iyon, that's the

Table 4 Cluster 4 provides the responses of the business owner and

For the three participants –

Through these responses, the general theme is “Mathematics influencing the

Table 5. Cluster 5. Mathematics in Profit Measurement

or mayroon bang mga

Table 5 Cluster 5 provides the responses of the business representatives on how

According to the participants –

Through these responses, the general theme is “Incorporating Mathematics in the

According to Deeb (2019), overseeing the finances of your company is key to

For tutor2u.net, Profit is perhaps the most important concept in business, so it is

Table 6. Cluster 6. Mathematics in Forecasting

kulang rin sa tauhan.Subok ulit

“Ah katulad din siya sa P3

According to the participants –

“Kasi kailangan makaipon ka. Yung naipon mo halimbawa, etong taon na to

Through these responses, the general theme is “Mathematics in Forecasting Using

According to Tuovila (2019), Forecasting is a technique that uses historical data

Table 7. Cluster 7. Mathematics in Financial Model

because that statements are

Table 7 Cluster 7 provides the responses of the business representatives on the

According to the participants –

Through these responses, the general theme is “Integrating Mathematics in the