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SAP-C02 · Question #746

A company is running several applications in the AWS Cloud. The applications are specific to separate business units in the company. The company is running the components of the applications in severa

The correct answer is A. In the organization's management account, create a cost allocation tag that is named. To allocate and visualize cloud costs per business unit across an AWS Organization, the existing 'BusinessUnit' tag must be activated as a cost allocation tag in the organization's management account.

Submitted by fatema_kw· Mar 6, 2026Design Solutions for Organizational Complexity

Question

A company is running several applications in the AWS Cloud. The applications are specific to separate business units in the company. The company is running the components of the applications in several AWS accounts that are in an organization in AWS Organizations. Every cloud resource in the company's organization has a tag that is named BusinessUnit. Every tag already has the appropriate value of the business unit name. The company needs to allocate its cloud costs to different business units. The company also needs to visualize the cloud costs for each business unit. Which solution will meet these requirements?

Options

  • AIn the organization's management account, create a cost allocation tag that is named
  • BIn each member account, create a cost allocation tag that is named BusinessUnit. In the
  • CIn the organization's management account, create a cost allocation tag that is named
  • DIn each member account, create a cost allocation tag that is named BusinessUnit. Also in each

How the community answered

(28 responses)
  • A
    93% (26)
  • C
    4% (1)
  • D
    4% (1)

Why each option

To allocate and visualize cloud costs per business unit across an AWS Organization, the existing 'BusinessUnit' tag must be activated as a cost allocation tag in the organization's management account.

AIn the organization's management account, create a cost allocation tag that is namedCorrect

For cost allocation tags to be effective across an AWS Organization, the custom tag (e.g., 'BusinessUnit') must be activated as a cost allocation tag once in the organization's management account. This activation ensures that the tag is recognized for billing and cost analysis across all member accounts, enabling visualization of costs by business unit in AWS Cost Explorer.

BIn each member account, create a cost allocation tag that is named BusinessUnit. In the

Activating cost allocation tags in each member account is unnecessary when AWS Organizations is in use; they only need to be activated centrally in the management account.

CIn the organization's management account, create a cost allocation tag that is named

Simply creating a cost allocation tag is insufficient; it must be explicitly activated in the AWS Billing console for it to be recognized and used for cost allocation.

DIn each member account, create a cost allocation tag that is named BusinessUnit. Also in each

Similar to B, activating cost allocation tags in each member account is redundant and incorrect when the organization's management account can activate them centrally.

Concept tested: AWS Cost Allocation Tags in AWS Organizations

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

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