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Difficulty: MediumCost Allocation Tags

A financial services company is restructuring its cloud cost reporting. The finance team wants to track monthly AWS spending using two specific tags: a custom user-defined tag named `CostCenter` and the AWS-generated tag `aws:createdBy`. Although resources have already been tagged with `CostCenter` and launched by developers for several weeks, neither tag is currently appearing in AWS Cost Explorer or the monthly cost reports. Which of the following describes the correct process to make both tags visible in the cost reports, and the effect this action will have on historical cost data?

  1. A
    The company must apply an IAM policy to enforce tagging at launch, which automatically activates both tags in AWS Cost Explorer for both past and future billing cycles.
  2. B
    AWS-generated tags like `aws:createdBy` are active by default, whereas user-defined tags like `CostCenter` must be activated via AWS Resource Groups, applying the cost allocation data retroactively.
  3. Both the user-defined `CostCenter` tag and the AWS-generated `aws:createdBy` tag must be activated in the Billing and Cost Management console, and the tag data will only appear on billing reports generated after activation.Answer
  4. D
    The tags must be activated in the AWS Resource Explorer console, which will automatically update both current and historical cost reports retroactively to show past spending.

Answer

Both the user-defined `CostCenter` tag and the AWS-generated `aws:createdBy` tag must be activated in the Billing and Cost Management console, and the tag data will only appear on billing reports generated after activation.
To use tags for cost allocation, both user-defined tags (such as `CostCenter`) and AWS-generated tags (such as `aws:createdBy`) must be activated in the Billing and Cost Management console. Once activated, AWS begins organizing billing data based on these tags. This activation is not retroactive, meaning that the tags will only appear on cost reports (like AWS Cost Explorer or the Cost and Usage Report) for billing periods after the activation date.

Step-by-Step Solution

1
Identify the console where cost allocation tags must be activated.
Billing and Cost Management console.
AWS requires cost allocation tags to be explicitly enabled in the Billing and Cost Management console before they can be used for cost tracking and analysis.
2
Determine the activation requirements for user-defined vs. AWS-generated tags.
Both types of tags must be explicitly activated.
Neither user-defined nor AWS-generated cost allocation tags are active by default for billing purposes; both require activation.
3
Evaluate the retroactive impact of activating cost allocation tags.
Tags do not apply retroactively to past billing periods.
AWS only starts tracking and displaying cost data by tags from the time of activation forward.

Key Concept

Activation and retroactive limitations of Cost Allocation Tags
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Topics

Cost Allocation Tags

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