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CV0-003 · Question #567

An organization has two businesses that are developing different software products. They are using a single cloud provider with multiple IaaS instances. The organization identifies that the tracking o

The correct answer is B. Tag each server with a dedicated cost and sum them based on the businesses. Cloud resource tagging is the standard mechanism for attributing infrastructure costs to specific teams or business units, enabling accurate per-business cost reporting from a shared cloud environment.

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Question

An organization has two businesses that are developing different software products. They are using a single cloud provider with multiple IaaS instances. The organization identifies that the tracking of costs for each business are inaccurate. Which of the following is the BEST method for resolving this issue?

Options

  • APerform segregation of the VLAN and capture egress and ingress values of each network
  • BTag each server with a dedicated cost and sum them based on the businesses
  • CSplit the total monthly invoice equally between the businesses
  • DCreate a dedicated subscription for the businesses to manage the costs

How the community answered

(53 responses)
  • A
    11% (6)
  • B
    81% (43)
  • C
    6% (3)
  • D
    2% (1)

Why each option

Cloud resource tagging is the standard mechanism for attributing infrastructure costs to specific teams or business units, enabling accurate per-business cost reporting from a shared cloud environment.

APerform segregation of the VLAN and capture egress and ingress values of each network

Segregating VLANs and capturing network egress/ingress tracks bandwidth consumption, not the full compute, storage, and licensing costs that drive cloud invoices.

BTag each server with a dedicated cost and sum them based on the businessesCorrect

Resource tags are key-value metadata labels applied to cloud instances that allow billing and cost management tools to filter and aggregate spending by business unit, project, or department. By tagging each server with the owning business, cost reports can accurately sum charges per business without restructuring the account hierarchy. All major cloud providers natively support cost allocation reports based on tags.

CSplit the total monthly invoice equally between the businesses

Splitting the invoice equally does not reflect actual usage and perpetuates the inaccurate cost tracking the organization is trying to resolve.

DCreate a dedicated subscription for the businesses to manage the costs

Creating dedicated subscriptions per business would isolate costs but requires significant account restructuring, migration of existing instances, and ongoing overhead - far more complex than applying tags.

Concept tested: Cloud resource tagging for cost allocation

Source: https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/cost-alloc-tags.html

Topics

#cost management#resource tagging#cloud billing#IaaS cost allocation

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