Question

Difficulty: MediumCost Allocation Tags

An organization wants to categorize their infrastructure spend by environment using the custom tag key 'Environment'. Additionally, they want to track which IAM user created each resource by using the AWS-defined tag 'aws:createdBy'. The tags have been applied to all resources, but the billing administrator notices that neither tag is appearing in AWS Cost Explorer. What action is required to resolve this issue and make these tags available for cost analysis?

  1. Activate both the 'Environment' and the 'aws:createdBy' tags in the Billing and Cost Management console, as cost tracking only begins from the time of activation forward.Answer
  2. B
    Configure an IAM policy that allows the billing service to read resource metadata, as user-defined tags require explicit permission policies to appear in billing reports.
  3. C
    Use AWS Resource Groups to consolidate the resources, which automatically enables cost allocation tracking and retroactively updates the previous month's billing data.
  4. D
    Register the tags inside AWS Resource Explorer, which will index the resources and retroactively populate cost data for the historical billing periods.

Answer

Activate both the 'Environment' and the 'aws:createdBy' tags in the Billing and Cost Management console, as cost tracking only begins from the time of activation forward.
To use cost allocation tags in AWS Cost Explorer or billing reports, they must first be applied to the resources and then activated in the Billing and Cost Management console. This applies to both user-defined tags (such as 'Environment') and AWS-generated tags (such as 'aws:createdBy'). Furthermore, cost allocation tags do not apply retroactively; they only track costs from the time they are activated in the billing console.

Step-by-Step Solution

1
Identify the types of tags used in the scenario.
The 'Environment' tag is a user-defined cost allocation tag, and 'aws:createdBy' is an AWS-generated cost allocation tag.
Both user-defined and AWS-generated tags are used for cost allocation, but they have different origins and naming formats.
2
Determine where cost allocation tags are activated for billing reports.
They must be activated within the Billing and Cost Management console.
Applying tags to AWS resources makes them visible in the console, but they do not appear in cost reports or AWS Cost Explorer until they are activated in the billing console.
3
Evaluate the timeline of the cost tracking.
Cost allocation tags start tracking costs only after activation and do not apply retroactively.
This explains why historical billing data does not reflect these tags and reinforces the forward-looking nature of cost allocation tags.

Key Concept

Activation of User-Defined and AWS-Generated Cost Allocation Tags
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