Mathematics plays a major role in business management because it helps maximize profit by using techniques such as analyzing production costs, determining ideal pricing, discerning sales patterns and projecting future sales. Having strong skills in mathematics means an individual can analyze all of a company's finances and make changes to save the company money and time, and ultimately make a higher profit.Know More
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. All companies need some sort of mathematician to look at the company's expenses, sales and cash flow. If a company has good documentation of where their money is coming from and going to, using mathematics, an individual is able to see inefficiencies in the company's operations and make important changes.
For instance, assume that a company is selling a lot of a product that has a very low sale price. After someone buys the product, half of the money that the company just made is just covering the production costs of the product, and another quarter of the money goes to the labor and shipping costs for the product. This means that only one-fourth of the sales price goes to profit. A mathematician could look at all of the costs and use simple arithmetic to find out how much the product's sale price could be raised to make more money left for overhead, while still maintaining high enough sales numbers to ultimately increase profit.Learn more in Managing a Business
The formula for profit is total revenue minus total expenses, resulting in net profit, according to Accounting Tools. Company finance officials review net income often to determine the viability of the company.Full Answer >
Teachers play a major role in educating the youth of a nation. Quality education is essential in ensuring that the country’s economy is robust, and that the youth become productive as they grow older. For very young children, teachers are meant to encourage them to study hard, and find a place in society that they can fit in.Full Answer >
While making a profit is a common goal for a business, a profit maximization goal is often viewed as unethical because of its impact on key stakeholders. Companies that seek to maximize profit may treat employees unfairly, harm the environment, mislead customers, and alienate suppliers.Full Answer >
Personal management is the sequence in which individuals set goals and outline short- and long-term strategies to fulfill those goals. Because personal management is highly individualized, no two people approach the system of goal fulfillment in the same ways. However, certain guidelines exist to help all types of people realize their financial, spiritual, educational and romantic goals.Full Answer >