Business Calculus         

                                                                                                                                                                               date: July 1 2023  version:1 


Business Calculus       Introduction          

           This site is an English translation version of the following Japanese website.
            If you are interested, please visit the following site.
                               Japanese version

1.Business calculus
  This web site is edited by N.Ishinabe Certified Public Tax Accountant Office in Japan about "Business Calculus", one of  the 21st century business problem-solving methods that introduces calculus into business. The 21st century, which  started with " Y2K  (computer year 2000 problem)", also experienced global damage caused by the new coronavirus (Covid- 19) in 2020, starting with global  warming. New management methods are required for corporate management to respond  to these drastic changes in the business environment. One solution is business calculus, which recognizes business as  science problems.        

  Business calculus is a branch of mathematics that focuses on the applications of calculus in the fields of business,  finance, and economics. It uses mathematical concepts to analyze and solve problems related to optimization, rates of  change, accumulation in  business contexts. Some of the key topics covered in business calculus include functions, limits  and continuity, derivatives, Integrals, optimization.

2.Five benefits of business calculus
1)Optimization: Calculus helps businesses find the best solutions for maximizing or minimizing a variable, like determining  the optimal price for a product.
2)Prediction: Calculus aids businesses in forecasting future trends and behaviors, such as demand for their products or  services.
3)Decision Making: Calculus provides a framework for evaluating the costs and benefits of different options, helping  businesses make informed decisions.
4)Financial Analysis: Calculus is crucial for calculating important financial metrics, like net present value and internal  rate  of return, critical for investment decisions and evaluating financial performance.
5)Risk Management: Calculus helps businesses assess the probability of certain outcomes and develop strategies to  manage risk, such as calculating the likelihood of default on a loan or the probability of a stock market crash.

3.5W1H for business calculus
* What is business calculus?(What)
 It is a new field of business administration that uses calculus to solve business problems. In Japan it is not familiar,  however it will  be  the subject that you can see recently at business schools/MBAs. By applying calculus, we grasp  business problems multi- dimensionally, such as point (0-dimensional)-> line(1-dimensional)-> surface (2-dimensional)->  volume (3-dimensional)-> adding  time(4-dimensional). For example, a break-even space analysis is better than a break-even point analysis in 21st-century  business, where uncertainty is high.

* Who is the target audience for business calculus? (Who)
  It is intended for people who are in charge of business management in practice, including university(graduate) students  studying  business administration.

*Where is business calculus?(Where)
 It is part of business decision-making areas such as investment, forecasting, and others.

* Why is business calculus necessary? (WHY)
 Until the 20th century, the mid-term management plan (MRP: Mid Range Plan) was a powerful management method  based  on the  premise that "the present and future are an extension of the past." In the 21st century, many companies  cannot respond to the drastic changes in the business environment with medium-term plans. Business calculus can also  be said to be one of the  management methods for dealing with drastic environmental changes in the 21stcentury.

* What tense is in business calculus? (When)
 Evaluate business data as past information as current information and make future predictions. Practically, there are  three  processes: acquisition of business data, formulation of data, and business decision by calculus.

* Business calculus web site policy (How)
 There are many people who study calculus , and there are also people who are completely unfamiliar with calculus. In  addition, we  make extensive use of Excel, and we have prepared a Calculus page, so we take into consideration those who  are not good at  calculus. Therefore, you can easily learn the essence of business calculus on this Website.

*** Introduction of  N.Ishinabe Certified Public Tax Accountant Office  ***
   -Representative: N.Ishinabe  
   -Director of foreign IT company, vice president in charge of finance of venture company 
   -Part-time lecturer at Graduate School for ten years, "Financial Accounting Theory"

Authors: The following three books :
 1.Financial Management              2.Credit Management Strategy     3.Practical CSR Management
 Sanno University Press,2006      Sanno University Press, 2008       Souseisya 2005

*Main article: "Cost Management and Economic Analysis of  Software" (Bulletin of Sanno  University Vol. 20 No. 1 1999)


    A quick note on business calculus :What if sin and cos are differentiated four times?

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