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The Dapper-Dons Partnership was formed ten years ago as a
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Traditional Versus ABC Systems Patties Pastries, Inc., (PPI) produces a variety of premium cheesecakes and sells them in individual packages directly to retail customers and in packages of 10 cakes to restaurants in New York, New Jersey, Pennsylvania, and Delaware. PPI started as a small retail outlet, where it developed a superb reputation for quality. In the late 2000s, it opened a chain of retail outlets. Only recently, it started selling cheesecakes to restaurants. Its penetration into the restaurant market has been slower than predicted. Although PPI produces several types of cheesecakes, all are about the same size and are considered a single product for costing purposes. PPI's existing costing system has a single direct-cost category, ingredients, and a single indirect-cost pool, production overhead costs. The system does not trace labor costs to the products; it considers them part of production overhead. 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  • Explain the relationship between the control accounts in the general ledger, and the subsidiary ledgers relating to debtors and creditors.
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