Question

Difficulty: EasyCost Allocation Tags

A business wants to track its cloud expenses by department using tags. They also want to trace who created each resource using the `aws:createdBy` tag. Which of the following statements are correct regarding how these cost allocation tags function? (Select TWO.)

  1. User-defined tags must be activated in the Billing and Cost Management console before they can be used to organize costs on billing reports.Answer
  2. AWS-generated tags, such as `aws:createdBy`, must be activated in the Billing and Cost Management console to appear on billing reports.Answer
  3. C
    Newly activated cost allocation tags will retroactively categorize resource costs on previous billing statements.
  4. D
    AWS Resource Groups automatically activate cost allocation tags for billing reports without console configuration.
  5. E
    AWS Cost Explorer automatically creates and applies user-defined tags to resources based on department names.

Answer

User-defined tags must be activated in the Billing and Cost Management console, and AWS-generated tags, such as `aws:createdBy`, must also be activated in the Billing and Cost Management console to appear on billing reports.
For tags to appear on billing reports, both user-defined tags and AWS-generated tags (like `aws:createdBy`) must be explicitly activated in the Billing and Cost Management console. Once activated, AWS organizes cost data based on these tags.

Step-by-Step Solution

1
Differentiate between user-defined and AWS-generated cost allocation tags.
Both types of tags exist, but neither automatically appears on billing reports by default.
Understanding the lifecycle of cost allocation tags is necessary to configure them.
2
Identify the activation requirement in the Billing and Cost Management console.
Confirm that both user-defined and AWS-generated tags must be activated in the Billing console before they are included in cost reports.
This is a required step for tags to show up in cost analysis tools like AWS Cost Explorer.
3
Determine if tags apply retroactively.
Tags only apply forward from the time of activation, not to historical costs.
To avoid expecting past reports to update automatically after activating tags.

Key Concept

Cost Allocation Tags activation and categorization rules
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