Business Studies is one of the best educational subjects in the world. It is an international study subject. It is an educational, academic subject that includes Accounting, Finance, Management, Human resources, and Marketing. A student can take any of these subjects to complete a business studies course. However, while reading various topics such as Accounting, Finance, Management, Human resources, and Marketing, students must face different mathematical problems and solve them. This article will discuss how students can overcome mathematical issues in business studies.
Relation between mathematics and business studies
There is a close relationship between business studies and mathematics. But it is essential to know one thing mathematics here refers to mathematical problems related to business. Arithmetical parts such as fractions, decimals, statistics, probability, etcetera are used in mathematical issues related to commerce. Students apply specific formulas in accounting and finance. In that case, online-based educational websites like Amphy Live Online Classes, Coursera, Udemy, Masterclass, etc., can help students a lot. Generally, students in the Department of Accounting and Finance use many mathematical approaches, including squares, square roots, and logarithms, to solve various business problems. Some steps to overcome mathematical problems are acquiring study skills, practicing mathematical problems, etc. So, mathematics has a close relationship with business studies.
Mathematical problems based on subjects in business studies
In business studies, we can see different mathematical problems in various subjects. Some are pure mathematical subjects, and some are both mathematical and theoretical. For example, we can say subjects like Business Mathematics and Statistics are pure mathematical subjects because these subjects are enriched with a lot of numbers and formulas. Almost in all academic subject of business studies course students have to study these subjects. Some subjects related to accounting or finance are divided according to their department. Students in the accounting department generally get a lot of chances to study different topics on accounting, finance, etc. Those subjects are known as both mathematical and theoretical. For example, Financial Management is a subject seen in the accounting and finance departments. During the reading of Financial Management, students first have to finish the well-known theoretical aspects of the concerned subject. Then the mathematical side is to finish. Accounting-related subjects in business studies such as Cost Accounting and Management Accounting help students to know about controlling costs and managerial decisions. These subjects have mathematical problems created under the fictitious names of different companies. Students learn to solve these mathematical problems and apply them in real life. So, we can see students face various mathematical problems based on their desired subjects in business studies.
Some steps to deal with mathematical problems in business studies
There are many ways to deal with mathematical problems in business studies. By following these ways, mathematical problems are overcome. Some of the essential steps are given below.
· Acquiring study skills
We know that each problem has a specific solution. We just need to know the way to overcome the problem. Thinking of mathematical problems, the first step to achieving skills while studying. The mathematical problems that seem challenging have to be tried repeatedly by a student. Reading a mathematical book is an excellent solution to strengthen the basic foundation. Good calculator typing skills, enhancing analytical ability, etc., are reasonable steps to acquiring study skills.
A firm is paying 500$ each quarter into a fund which pays 12 percent per year interest, compounded quarterly. How much will have accumulated in the fund by the end of the year?
Solution: The amount of the annuity at the end of the first year is
Here, R (Amount of present value) =500, I (Interest rate) =r÷m=12%÷4=3%, n=mt=4*1=4
We know amount of ordinary annuity,
To solve this problem, we need good skill in calculator typing, good in-depth knowledge in calculating ordinary annuity, analytical ability to understand all the elements. So, acquiring study skills is a good step.
· Eliminate mathematical fear
Most business administration students are afraid of the mathematical chapters of their course. Most of them try to avoid these chapters. Moreover, some of them don’t give any answers related to mathematics in the aspects of the business. Students have to practice more to overcome the fear of math problems.
· Practicing mathematical problems more and more
A proverb goes, “Practice makes a man perfect.” The lack of proper practice is seen among the students of business studies. If someone has a problem with any subject, practice helps get out of it. So impenetrable mathematical problems need to be practiced more and more.
· Enhancing the ability of understanding
Most business studies students don’t understand the core concept of a mathematical question. If any slight changes exist in some questions, they can’t solve them. It is essential to understand the questions while solving mathematical problems in the test. We know that some subjects in the Business Studies course require theoretical knowledge. As a result, one must look at all the academic issues before some mathematical problems. Theoretical topics are said to understand all the necessary formulas and basic concepts. Students can achieve the main idea by reading good books.
Just take these problems to know this part better.
Deere & Co. purchased a machine for 100000$. It had an estimated working life of 5 years and a salvage value of 5000$. Compute rate of depreciation under diminishing balance method.
Solution: We know,
Rate of depreciation(r)=1
Where, R=Rate of depreciation
C=Initial cost of assets
So, r= 1
=1-0.55(Approx. using log and Antilog)
=0.45 or 45%
Deere & Co. purchased a machine for 100000$. It had an estimated working life of 5 years and a salvage value of 5000$. Compute rate of depreciation under double declining balance method.
Solution: We know,
Annual depreciation under straight line method=
Rate of depreciation under straight line method=
∴Rate of depreciation for double declining balance method=20%*2=40%
Just see the bold part of these questions. The maximum parts of these questions are the same except the bold part. The answers and the solution method of these questions are different. So, understanding the core meaning of a question is a perfect way to overcome mathematical problems.
In conclusion, there are many steps to overcome mathematical problems, such as gaining study skills, increasing understanding, practicing more and more, etc. It is expected that students will be able to come up with more possible steps to overcome mathematical problems in the future.