Learn how to efficiently bill departments for AWS resource usage with minimal operational overhead using cost allocation tags. Ideal for AWS Certified Cloud Practitioner CLF-C02 exam preparation.
Table of Contents
Question
A company is running workloads for multiple departments within a single VPC. The company needs to be able to bill each department for their resource usage. Which action should the company take to accomplish this goal with the LEAST operational overhead?
A. Add a department tag to each resource and configure cost allocation tags.
B. Move each department’s resources to their own VPC.
C. Move each department’s resources to their own AWS account.
D. Use AWS Organizations to get a billing report for each department.
Answer
A. Add a department tag to each resource and configure cost allocation tags.
The correct answer is A, as it provides the most efficient and least operationally intensive solution for billing departments within a single VPC.
Explanation
Adding a department tag to each resource and configuring cost allocation tags is an action that can help you achieve the goal of billing each department for their resource usage with the least operational overhead.
AWS Cost Allocation Tags enable organizations to track and manage costs by categorizing resources based on custom key-value pairs, such as “Department.” Here’s why this approach is ideal:
Tagging Resources
By adding a “Department” tag to each AWS resource, the company can label resources according to the department that uses them. For example:
- Key: Department
- Value: Finance, Marketing, etc.
Activating Cost Allocation Tags
After tagging, these tags must be activated in the AWS Billing and Cost Management console. This allows AWS to include the tagged resources in cost allocation reports.
Generating Cost Reports
AWS generates detailed cost allocation reports in CSV format, grouping costs by active tags. This enables granular tracking of resource usage and associated costs per department without requiring additional accounts or organizational restructuring.
Why Not the Other Options?
B. Move each department’s resources to their own VPC: While separating resources into different VPCs might help with isolation, it adds significant operational overhead and does not inherently solve the billing problem.
C. Move each department’s resources to their own AWS account: Creating separate accounts for each department is unnecessary and increases administrative complexity unless there are strong isolation or compliance requirements.
D. Use AWS Organizations to get a billing report for each department: AWS Organizations supports consolidated billing across multiple accounts but does not provide departmental-level granularity within a single account or VPC.
Advantages of Using Cost Allocation Tags
- Minimal setup and maintenance effort compared to creating separate accounts or VPCs.
- Flexibility to apply tags dynamically across various services.
- Detailed cost visibility without disrupting existing infrastructure.
This approach aligns with best practices for cost management in AWS and is particularly relevant for candidates preparing for the AWS Certified Cloud Practitioner (CLF-C02) exam, as it demonstrates knowledge of efficient billing practices within the AWS ecosystem.
Amazon AWS Certified Cloud Practitioner CLF-C02 certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Amazon AWS Certified Cloud Practitioner CLF-C02 exam and earn Amazon AWS Certified Cloud Practitioner CLF-C02 certification.