Top managers must compare the benefits and costs of decentralization, often on a function-by-function basis, when choosing an organizational structure. Surveys of U.S. and European companies report that the decisions made most frequently at the decentralized level are related to product mix and advertising. In these areas, subunit managers develop their own operating plans and performance reports and make faster decisions based on local information. Decisions related to the type and source of long-term financing are made least frequently at the decentralized level. Corporate managers have better information about financing terms in different markets and can obtain the best terms. Likewise, centralizing its income tax strategies allows the organization to optimize across subunits, for example by offsetting the income in one subunit with losses in others.