AWS Certified Cloud Practitioner

Explanation

Correct Answer: B - Use tags to organize the resources. Activate cost allocation tags to track AWS costs on a detailed level.

Why This is Correct:

• Tags are key-value pairs that can be applied to AWS resources to organize them based on different criteria
• Cost allocation tags allow you to categorize and track AWS costs by specific dimensions like:
  • Business department
  • Environment (dev, test, prod)
  • Application
  • Project
  • Cost center

How It Works:

1. Tag Resources: Apply consistent tags to all AWS resources
2. Activate Cost Allocation Tags: Enable these tags in AWS Cost Management
3. Detailed Cost Tracking: AWS Cost and Usage Report will break down costs by these tags
4. Custom Reporting: Create detailed cost reports filtered by department, environment, application

Why Other Options Are Incorrect:

• A: AWS Cost Management console is for overall cost management, not detailed categorization by specific business dimensions
• C: CloudWatch is for monitoring performance metrics, not detailed cost categorization
• D: AWS Billing dashboard provides overall billing information but lacks the granular categorization by business-specific dimensions

Key Benefits:

• Granular Cost Visibility: Track costs at the department, environment, and application level
• Budget Management: Set budgets for specific departments or projects
• Cost Optimization: Identify spending patterns and optimize resource usage
• Chargeback/Showback: Allocate costs accurately to different business units