Exam AWS Certified Cloud Practitioner topic 1 question 158 discussion

Cost allocation tags are key-value pairs that can be assigned to AWS resources. They allow users to categorize and track costs based on specific attributes or dimensions, such as application, environment, department, or any other custom criteria. By assigning cost allocation tags to resources, the company can gain visibility into the costs associated with each application. To implement this, the company can create and apply appropriate cost allocation tags to the resources used by each application. Once the tags are in place, they can use AWS Cost Explorer or the AWS Cost and Usage Reports to view cost breakdowns based on the assigned tags. This will provide the necessary visibility and insights into the costs incurred by each application within the single AWS account.

Correct Answer is D :Create cost allocation tags This allows the company to track and compare costs for each application separately in AWS Cost Explorer and AWS Cost and Usage Reports.

"each application"* - so tags are useful in this case

cost allocation tags are key -value pairs that can be assigned to a resource or any aws service , the allow you to gain more visibility to the products provisioned

MONITOR - not set a limit, solid D

D Agreed

To meet the requirement of monitoring the AWS Cloud costs incurred by each application, the company can create cost allocation tags. Cost allocation tags allow the company to categorize resources in the AWS environment with metadata that reflects the organization's structure and needs. Each tag consists of a key-value pair that can be associated with AWS resources such as EC2 instances, EBS volumes, and RDS instances. By applying cost allocation tags to AWS resources, the company can gain a better understanding of which resources are used by which application, and monitor the costs of each application in Cost Explorer. The company can also use the tags to filter and group the cost and usage data in reports and create custom cost allocation reports.

A - no coz receives invoices instead of paying by card B - no coz access to compliance reports C - no coz gets alerts for accounts on over usage, etc. D - yes

D is the answer. How to you know the cost for an individual app in Budgets if you do not have tags associated?

D is the answer

It should be D, budgets are not used to monitor the costs by resource, they are mostly used to control the money spent

Cost allocation tags are labels that can be attached to AWS resources and tracked in the AWS Billing and Cost Management console. This helps the company to identify and monitor the costs incurred by each application.

C is correct. There are some limitation if you use tag to monitor the cost of the application. See below : Limitations on resources that can be tagged: Not all AWS resources support tagging, and the tags supported by different services may have varying limitations. It's important to review the documentation of each service to understand which resources can be tagged and how. Limitations on the granularity of the tags: The granularity of the tags can be limited by the service that the resource belongs to. For example, you may not be able to tag an EC2 instance by its individual usage time, and instead, the tag will apply to the entire instance. This limitation can make it difficult to track and optimize costs for specific application components.

Look at the word "Monitor". (D) Cost allocation tags is relevant one to monitor. Is dint ask to set the budget or pool the data.

D is the answer.

Tricky question again : https://www.cloudzero.com/blog/aws-budgets-vs-cost-explorer#:~:text=AWS%20cost%20tool.-,What%20Are%20The%20Differences%20Between%20AWS%20Budgets%20And%20Cost%20Explorer,costs%20and%20forecast%20future%20spending. "It’s also not possible to create custom budgets directly from AWS Cost Explorer"

It is D