This is the background information, the question is:Nicola allocated common costs to divisions based upon how much space the stock consumes in the showroom.(i) suggest three costs in relation to Nicola's business that she may have classified as 'common costs'(ii) Discuss whether you think her method of allocation of common costs is appropriate. Justify your answer.

7___.__.. ' \\ Nicola owns and operates a small business selling homewares. She established the business around 12 years ago, and has seen a big increase in demand in recent years. Nicola is concerned that operating the business on her own islbecoming too much for her, and is considering downsizing. Her accountant advised her to analyse business performance based on the items she sells, as it may provide insights into the direction she could move. Selected accounting information for the divisions, and the business as a whole, are provided below. These relate to the year ended 30 June 2022. Wall art Linen Indoor plants 244,400 (120,100) 124,300 110,500 (19,800) ontribution Common Costs (10,000) (25,000) (25,000) Divisional Prot l 54,600 I (6,500) (60,000)