Controlling

The aim of this Master's thesis was to characterize the current cost ratio, pricing system and profitability of an agricultural firm, called P.G.TRADE, spol s r.o.. This company is engaged in the production and sale of compound feeds and premixes, resp. in storing different kinds of agricultural commodities. My specific aim was to determine whether the current pricing system and prices cover all the costs which incurred because of the processes of production and sale of finished products and that in doing so provides a satisfactory level of profitability, too. In the first, methodological part, I summarized all the necessary theoretical knowledge that we need to know about controlling. I paid particularly big attention to calculations and budgeting. In the application part I focused on the characteristics of the company itself and on the analysis of the costs and of the pricing system. In the next part I described in details the manufacturing processes of compound feeds and premixes in the company's main factory in Dvory nad Žitavou. The last part is devoted to the calculation of production costs and identifying weaknesses. In addition to the description of the conclusions I tried to propose some measures that could help in improving the company's profitability