A company needs to organize its resources and track AWS costs on a detailed level. The company needs to categorize costs by business department, environment, and application. Which solution will meet

Question

Options

• AAccess the AWS Cost Management console to organize resources, set an AWS budget, and
• BUse tags to organize the resources. Activate cost allocation tags to track AWS costs on a detailed
• CCreate Amazon CloudWatch dashboards to visually organize and track costs individually.
• DAccess the AWS Billing and Cost Management dashboard to organize and track resource

• A
  4% (1)
• B
  93% (25)
• D
  4% (1)

Explanation

Explanation

Option B is correct because AWS resource tags (key-value pairs like Department: Finance, Environment: Production, Application: PayrollApp) allow you to categorize resources across any dimension you choose, and activating cost allocation tags in the Billing console enables AWS to break down your Cost Explorer reports by those exact tag keys - giving you granular cost visibility by department, environment, and application simultaneously.

Option A is wrong because AWS Budgets is used to set spending alerts and limits, not to categorize and track costs by custom organizational dimensions - it lacks the granular tagging-based breakdown the question requires.

Option C is wrong because CloudWatch dashboards are designed for monitoring operational metrics (CPU, latency, errors), not for organizing and tracking billing costs by business category.

Option D is wrong because while the Billing and Cost Management dashboard provides overall cost summaries, it cannot categorize costs by custom business dimensions (department, environment, application) without cost allocation tags already being in place.

Memory Tip

Think "Tag it to track it" - whenever an exam question mentions categorizing AWS costs by business attributes (department, team, project), the answer always involves resource tags + cost allocation tags. Tags are the foundation; cost allocation tags are what make them visible in billing reports.

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