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Business mathematic
- 1. Bachelor of Engineering Management (HONS) Business Mathematic Nisshan S/O Selvakumar Assingment 2 - Presentation 911101-07-5261
- 2. Contents What is business mathematics? Definition of business mathematics Finance inventory management financial analysis
- 3. Definition of business mathematics Explanation of Definition of Business Mathematics Advantages of Business Mathematics
- 4. What is business mathematics? Business mathematics help to solve economic problems by means of methods and concepts provided in the sphere of mathematical science. It is clear to everyone that bankers crunch numbers on a daily basis. Business math is for the individual who wants to fully understand everything about personal finance and it's also for the business person who wants to learn about business finance.
- 5. Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. financial analysis
- 6. typically the income tax is the single largest expense in a household Government gives many incentives in the form of tax deductions and credits of the myriad tax breaks when planning one's personal finances Incometex
- 7. Protection against unforeseen personal events, as well as events in the wider economy Transference of family across generations (bequests and inheritance) Effects of tax policies (tax subsidies and/or penalties) on management of personal finances Effects of credit on individual financial standing Development of a savings plan or financing for large purchases (auto, education, home) Planning a secure financial future in an environment of economic instability Finance
- 8. Inventory management is primarily about specifying the shape and percentage of stocked goods. Inventory management leads to optimal inventory levels. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution system, functions to balance the need for product availability against the need for minimizing stock holding and handling costs. Inventory management can also help companies improve cash flows. Source: Boundless. “Benefits of Inventory Management.” inventory management
- 9. Question: A manufacturer gains 25% after allowing a trade discount of 15% of the list price of an article. The cost of manufacturing the article is increased by 25% and the catalog price is increased by 20% only. Find the new profit percent keeping the same rate of discount. Let the catalog price be 100 dollars Discount = 15 dollars Selling price = 85 dollars Cost price = 85 x 100/125 = 68 dollars Increase in cost price = 25% New cost price = 68 x `(125)/(100)` = 85 dollars New catalog price = (100 + 20) = 120 dollars New selling price=120 x `(85)/(100)` = 102 dollars New profit= 102 - 85 = 17 dollars Profit percent = `(17)/(85)` x 100 = 20 Solution: Example
- 10. when you get that first real job and learn that you’ll have an annual salary of $36,000 , realize that you don’t have $3,000 a month to spend. Let’s say that your income tax rate will be 5%. What will be your disposable income? 1. Find the amount of taxes that you’ll pay. 36,000 * .05 = $1,800 2. Subtract the amount of taxes from your income. $36,000 – $1,800 = $34,200 Disposable Income: $34,200 Disposable Income per Month: $34,200/12 = $2,850 Example
- 11. Sales forecasts are estimates of your sales for the forecast period. The sales forecast establishes the level of activity used in all the other forecasts and budgets for the business. Regularly updating forecasts ensures current market intelligence buying signals from clients and the efforts behind the marketing strategy sales forecasting
- 12. Mathematics Dictionary by R. C. James Call Number: Ref. QA5 .J33 1992 ISBN: 0412990415 Publication Date: 1992-07-31 Business Mathematics, D.C. Sancheti, V.K. Kapoor, Sultan Chand & Sons Publications,2006. Reference
- 13. Business Mathematics includes the mathematic skills and information one need to use in the operation of the business in order to successful. There are several mathematics models or concepts used in business although; some of them are only useful for the managerial purposes. A business will in most casesoperate in a profitable way if it uses Business Mathematics. Conclusion
- 14. Thank you….
Editor's Notes
- Business mathematics is the branch of mathematics which is helpful for businessmen . Every businessmen is in tension about how to solve different business problems . In these problems we can include , interest calculation , hire rates , salary calculation , tax calculation , Public provident fund calculation , Foreign exchange calculation and more over what is the quantity he should produce etc. Business mathematics is not only helpful for businessmen but also it is helpful for general public because , if they learn it , they can deal with businessmen with better way. Business mathematics is easier than general mathematics . It can learn businessmen very easily . At Graduation and post graduation level , it is the main subject of commerce . Its certain theories are so famous and very useful for businessmen . From this simple definition , we find that business mathematics is nothing more than different formulas and theories like interest rate , annuity rate , matrix theory , linear programming theory and probability theory and many more . With these formulas and theories business can calculate many solutions of different problems .
- Put quite simply, Business Math deals with Money! Who can't benefit from having a better understanding of money and finance? Everyone can! Business math is for the individual who wants to fully understand everything about personal finance and it's also for the business person who wants to learn about business finance. You simply can't take business without taking math, business and math go hand in hand. Some passionate business math enthusiasts will tell you, if you don't take any other math or if you don't like math, you still need business math and because it deals with money, you might just like it. Everyone needs to manage money on some level which is what makes business math important for everyone to take.
- One of the most common ways of analyzing financial data is to calculate ratios from the data to compare against those of other companies or against the company's own historical performance. For example, return on assets is a common ratio used to determine how efficient a company is at using its assets and as a measure of profitability. This ratio could be calculated for several similar companies and compared as part of a larger analysis.
- It is important to distinguish between the general notion of income tax and federal income tax. In the United States, governments at the state level may also levy income taxes in addition to federal income taxes. Not all states have implemented state level income taxes. For example, the states of Texas and Florida are just two of the handful of states in which federal income taxes are the only income taxes that are levied.
- the study of finance can also take many forms, depending on the field or area of finance which one wishes to study. For instance, economics is considered a pillar of financial science, where both macro and microeconomic factors affect virtually levels of financial decisions and outcomes at all levels. Additionally, the study of behavioral finance aims to study the more "human" side of a science considered by most to be highly mathematical. This illustrates that the study of finance can, at times, be more art than science.
- Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use. Two common inventory-management strategies are the just-in-time method, where companies plan to receive items as they are needed rather than maintaining high inventory levels, and materials requirement planning, which schedules material deliveries based on sales forecasts.
- Sales forecasting is estimating what a company's future sales are likely to be based on sales records as well as market research. The information used in them must be well organized and may include information on the competition and statistics that affect the businesses' customer base. Companies try to forecast sales in hopes of identifying patterns so that revenue and cash flow can be maximized. Basically, sales forecasting is analyzing all parts of a business from total inventory to the strengths and weaknesses of salespeople. Managers must think about changes in customer sales or other changes that could affect the estimated figures. They must be competitive when assessing the competition and how they can surpass others in the marketplace to better meet the needs of the target market.