A company needs to categorize and track AWS usage cost based on business categories. Which AWS service or feature should the company use to meet these requirements?

Question

Options

• ACost allocation tags
• BAWS Organizations
• CAWS Security Hub
• DAWS Cost and Usage Report

• A
  92% (36)
• C
  5% (2)
• D
  3% (1)

Explanation

Cost Allocation Tags allow companies to assign custom metadata labels (such as department, project, or business unit) to AWS resources, enabling granular tracking and categorization of costs by business categories in AWS Cost Explorer and billing reports.

Why the distractors are wrong:

• B. AWS Organizations is used to manage multiple AWS accounts centrally, not to categorize costs by business labels.
• C. AWS Security Hub is a security posture management service that aggregates security findings - it has no cost categorization functionality.
• D. AWS Cost and Usage Report provides detailed billing data, but it reports on costs rather than actively categorizing them by business units; cost allocation tags are what enable that categorization within the report.

Memory Tip: Think of cost allocation tags like price stickers with department labels - you tag each resource with a business category (e.g., "Marketing" or "Finance"), and AWS uses those tags to sort and track spending accordingly. If the question involves labeling or categorizing resources for cost purposes, tags are almost always the answer.

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