NAME : MUHAMMAD SHAMIKH

ROLL NO : BM-26708
COURSE NAME : BUSSINESS MATHEMATICS
COURSE CODE : MT-103
TOPIC : APPLICATIONS OF MATHEMATICS IN
BUSSINESS VENTURES
WHAT IS BUSSINESS MATHEMATICS ?
Mathematics is an integral aspect of corporate management. Business and
mathematics go hand and hand as industry deals in capital, so capital is all about
itself. One has to handle resources at some stage or the other to make choices
ensuring that everybody understands mathematics.

Commercial companies use company mathematics to document and control

business activities. Commercial companies, in finance, cash control, promotion,
revenue planning, and financial reporting, use mathematics.

It assists you to learn the fractions, financial formulae; employ prices, tax
calculation, calculations including interest calculation, and wage calculation,
etc. which allow you to effectively complete business tasks. Enterprise analysis
frequently involves statistics and offers enterprise problem-solving.
IMPORTANCE OF BASIC MATHS IN
BUSSINESS
In order to learn a business, it needs more expertise
than product creation or service distribution. If a
company wants to excel in thriving ad it needs to look
after the finances as well as making appropriate
provisions for it to survive.

Understanding the mathematics of business is necessary

to retain efficient operations and reliable record
keeping. Pricing products or services is needed right
from the start until the end where we need to test if the
target was achieved. Let’s look at contexts how math is
important in business
1.     Estimation of production costs

It is really necessary to quantify the costs that will be incurred

in relation to development, such as the cost of equipment,
administrative expenses, rent, and raw materials, etc. before
one officially begins production and develops its company.
Many related costs such as publicity, warehousing, tax and
servicing of loans etc. are in addition to these essential
expenditures. After all the manufacturing costs had been
covered, it will be quick to predict the income from it in order
to continue and stay profitable in the sector. Determining
precisely the costs involved with each commodity can render
the market base solid.
2.     Price evaluation
After you have accurately calculated the prices, the next step is
to appropriately price the goods such that they produce the
best amount of cash flows for potential market needs.
Charging the right price for sale will mean the company
remained competitive.

Here mathematics is very important to evaluate the correct

price for your product or service. You have to keep in mind all of
the expenses, depreciations, and other liabilities before fixing
the price of a product or service of your company.
3.     Calculation of profit

Calculation of profits in your business also needs math. It

requires net income to be measured by extracting the
operational expenses from the gross sales / revenue over time.
The vat, interest, insurance costs are always what needs to be
excluded. This helps to figure out how the products are paid
sufficiently to proceed to extend the company activities.
4.     Analysis of finance in your business
When we want to evaluate the financial performance of a company, the
income and expenditures of a company will be estimated. They ought to
conduct risk analyses on how the company could be impacted by a rise or
decline in revenue statistics or costs. This helps me decide whether each
person responds to the company and whether I’d affect this. Use of
business mathematics helps put these explanations advertising to a
greater degree of industry.

To assess the company’current financial performance, you’ll need to estimate

potential sales and expenditures. Estimating how much an individual
influences sales will determine how you can continue to add to your
employees, and whether the gains generated are worth the expense. When a
rival is offering a cheaper commodity, whether you reduce costs, you may
need to measure the sum for which the value is to rise.
You may need to ask whether you can manage to increase the revenue to
boost the operations. Before moving your company to the next point, it is
important to use business math to consider how these forms of acts affect the
total finances.
Business Mathematics Scope
Every person who wants to make a career in business mathematics also
needs to have skills in topics such as business management, finance, and
economics, in addition to mathematical skills.
It is needed to open several doors in this demanding area. It is important
to have strong written and oral communication skills as company
mathematicians need to operate on teams and be in touch with
customers.
Since all businesses need to handle their resources and profits, many
mathematicians have work in these fields. Mathematicians adopt the
rational thinking; pursue a market approach to problem-solving.
THANK YOU