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A company needs to label its AWS resources so that the company can categorize and track costs. What should the company do to meet this requirement?
A
Use cost allocation tags
B
Use AWS Identity and Access Management (IAM)
C
Use AWS Organizations
D
Use the AWS Cost Management coverage report
Explanation:
Cost allocation tags are the correct solution because:
Purpose: Cost allocation tags allow you to categorize and track your AWS costs by adding metadata (tags) to your AWS resources
Functionality: You can apply tags to resources like EC2 instances, S3 buckets, and other AWS services
Cost Tracking: AWS Cost Explorer and billing reports can then group and report costs based on these tags
Categorization: Tags can represent departments, projects, cost centers, or any other organizational structure
Why other options are incorrect:
AWS IAM: Manages access control and permissions, not cost tracking
AWS Organizations: Helps manage multiple AWS accounts but doesn't directly provide resource labeling for cost categorization
AWS Cost Management coverage report: Shows which services are covered by Cost Explorer, but doesn't provide the labeling mechanism itself
Best Practice: Use consistent tagging strategies across all AWS resources to enable detailed cost analysis and allocation.