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Difficulty: EasyCost Allocation Tags and Resource Tagging Strategies

A SysOps Administrator applied the tag key `CostCenter` to several Amazon EC2 instances and Amazon S3 buckets to track project expenditures. However, when analyzing costs, the `CostCenter` tag key does not appear as a filtering option in AWS Cost Explorer. Which two actions must the SysOps Administrator perform to resolve this issue and track costs by this tag? (Select TWO.)

  1. Activate the CostCenter tag in the AWS Billing and Cost Management console.Answer
  2. Wait up to 24 hours after activation for the tag to appear in AWS Cost Explorer.Answer
  3. C
    Create an IAM policy that grants the Billing service permission to read resource tags on the S3 buckets and EC2 instances.
  4. D
    Enable resource tag synchronization in the AWS Cost Explorer settings.
  5. E
    Re-apply the tags in the AWS Organizations management account, because tags applied in member accounts cannot be used for cost allocation.

Answer

Activate the CostCenter tag in the AWS Billing and Cost Management console, and wait up to 24 hours for the activated tag to appear in AWS Cost Explorer.
To track costs using a custom resource tag, the tag must be activated in the AWS Billing and Cost Management console. Once activated, it can take up to 24 hours for AWS to update the billing dashboard and display the tag as a filter in AWS Cost Explorer.

Step-by-Step Solution

1
Access the AWS Billing and Cost Management console using credentials from the management account or an account with billing administration permissions.
The SysOps Administrator is authenticated and can manage billing-wide configurations.
Cost allocation tags must be activated from the Billing console, and in a multi-account environment, this is managed at the Organization payer/management account level.
2
Navigate to the Cost Allocation Tags page, search for the CostCenter tag key under the User-defined cost allocation tags tab, select it, and click Activate.
The tag is marked as active for cost allocation.
AWS does not automatically use standard resource tags for cost tracking; they must be explicitly activated to begin generating cost allocation metadata.
3
Allow up to 24 hours for the AWS Billing system to process the new tags and update Cost Explorer.
The CostCenter tag is indexed and becomes available as a filter and grouping dimension in AWS Cost Explorer.
AWS updates cost allocation tag data on a daily cycle, requiring a propagation period before the tags can be queried.

Key Concept

Standard resource tags applied to AWS resources do not automatically function as cost allocation tags. They must be explicitly activated within the AWS Billing and Cost Management console (typically in the management/payer account of an AWS Organization) before they can be used to filter or group costs in AWS Cost Explorer. Once activated, it can take up to 24 hours for the tags to be reflected in Cost Explorer.
Estimated Time:1m 30s
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Topics

Cost Allocation Tags and Resource Tagging Strategies

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