DFOA 1202: BUSINESS MATHEMATICS
COURSE TITLE FUNDAMENTALS OF BUSINESS MATHEMATICS
COURSE LEVEL SEMESTER ONE
COURSE CODE DSIM 1105
CONTACT HOURS 60
CREDIT UNITS 4
Brief course description Business mathematics presents mathematical skills and knowledge
that can be applied to solve financial and non-financial problems.
However, the course is designed to help students develop the skills
and mental ability needed to perform basic mathematical
operations quickly and accurately in a business or non-business
environment. A variety of topics will be covered, with emphasis
on whole numbers, decimals, linear functions and its applications
in business, fractions, and percent calculations and their
applications in marketing mathematics (margins, mark-ups), and
cash discounts, etc.
Course objectives The course intends to enable the learner to:
Develop the ability of mathematical thinking and apply
mathematical concepts and symbols in business and
throughout their day-to-day lives.
Explain the meaning, concepts and terms commonly used
in the study of the course such as Part (P), Base (B), Rate
(R) (used in percent problems), simple interest, equivalent
rate of interest, promissory and demand notes, mathematics
of buying and selling, etc.
Competently differentiate and use the various
mathematical operators in computing simple business
mathematical problems such as percent components like
Part (P), Rate (R), and Base (B), fractions, linear equations,
etc.
Apply mathematical ideas and techniques in the actual
business situation or business-related disciplines.
Expected outcome Upon completion of the course, students are expected to:
Demonstrate high level of mathematical ability to perform
basic mathematical operations quickly and accurately
through the application of mathematical theories, concepts,
functions and techniques that can help them to analyze and
come up with rational decision in any business
environment.
Explain the meaning, concepts and terms commonly used
in the study of the course such as the Part (P), Rate (R),
and the Base (B) (used in percent problems), simple
interest, compound interest, promissory and demand notes,
mathematics of buying and selling, etc.
Competently differentiate and use the various
mathematical operators in computing simple business
mathematical problems such as percent components like
Part (P), Rate (R), Base (B), fractions, linear equations, etc.
Transfer mathematical ideas and techniques in the actual
business situation or business-related disciplines.
DETAILED COURSE DESCRIPTION
PERIOD / TOPIC/SUB-TOPIC CONTACT
WEEK HOURS
1 Introduction to Business Mathematics 5
Definitions, terms and concepts
Mathematical operations
Concepts in Mathematical operations
Whole numbers and its applications.
Rounding whole numbers using various techniques.
Steps required in rounding whole numbers
Addition, subtraction, multiplication, and division of whole
numbers.
Multiplying whole numbers by omitting zeros.
2 Fractions 5
Types of fractions.
Conversion of fractions from one form to another.
Writing fractions in lowest terms.
The rule of divisibility tests.
Expressing fractions as decimals and vice-versa.
Fractions as percentages.
3 Ratios, Proportions, and Percentages 6
The three (3) components of percent problems
Calculation of the percent components
The Part (P)
The Rate (R)
The Base (B)
Practical applications of the basic percent components in real
business situation.
4 Functions and Relations: Linear equations 8
Illustration of linear equations.
Structure of linear equations.
The general form of a linear equation.
Deriving a linear equation.
The graphs of linear equations.
The X and the Y intercepts.
The gradient / slope of the line.
5 Applications of linear equations in business and economics 8
Linear demand equations or functions.
Linear supply equations of functions.
Market equilibrium.
Consumption function.
Break Even Analysis.
6 Marketing mathematics 10
Mathematics of buying and selling
Introduction.
Common documents used in buying and selling.
Common terms used in buying and selling: e.g. F.O.B (Free on
Board), Receipt of Goods (R.O.G), etc.
Trade discount.
Factors for changes in trade discount.
Methods of calculating trade discount
Simple discount.
Series discount.
The use of complements.
Mark down and other terms associated with loss
Operating loss.
Break Even Point.
Absolute loss/gross loss.
Operating expenses.
7 Turnover and Valuation of Inventory 5
Introduction
Determining average stock turnover
Stock valuation approaches:
Stock turnover at Retail.
Stock turnover Cost.
8 Principles of Simple and Compound Interest 5
Introduction to Simple and Compound Interest
Introduction to the concept of Principle (P), Rate ®, and Time (T).
Calculating the Principle, Rate and Time.
Compound interest.
Calculating Present Value (PV).
9 Financial Statements and Ration Analysis 8
Brief overview of the various financial statements:
Statement of Comprehensive Income (Income Statement).
Statement of Financial Position (Balance Sheet).
Structure of Financial Statements.
Applications of ratios in analyzing income statement and the
balance sheet.
Conclusion statements from the results.
TOTAL CONTACT HOURS 60
METHODS OF DELIVERY: Lectures, presentations, group discussions, independent study.
METHODS OF ASSESSMENT: Individual written assignments, tests, and group work will account
for 30% of the total marks possible, while final examinations will constitute the remaining 70% making
a total of 100%.
REFERENCES:
Charles D. Miller, Stanley A. Salzman, Gary Clendenin, (2003), Business Mathematics, 8th Edition.
Dietz, J., Southam, J. (2016). Contemporary Business Mathematics for Colleges, 17th Edition, Boston,
MA: Cengage Learning, ISBN: 978-1-305-50668-8.
James E. Deitz, James L. Southam, (2003), Contemporary Business Mathematics for Colleges.
Jay Diamond, Gerald (2006), Mathematics of Business, 3rd Edition, Printel Publishers.
Jones-Adair & Young, Touch Operations of the Electronic Calculator: A Brief Course, Thompson,
2005,
Miller Mc. (2005), Business Mathematics, 5th Edition, Prentice Hall London.
