Question

Difficulty: HardCost Allocation Tags and Resource Tagging Strategies

An organization uses AWS Organizations with consolidated billing. A SysOps administrator enforces a tag policy across all member accounts to ensure all Amazon EC2 instances are tagged with `InitiativeID` for tracking project costs. After verifying that the member accounts have compliant resources with the `InitiativeID` tag applied, the administrator attempts to create a cost-budget in the management account but finds that `InitiativeID` is missing from the tag filter list in the AWS Budgets console. Which action must the administrator perform to resolve this issue?

  1. Navigate to the Cost Allocation Tags section in the management account's Billing and Cost Management console, select the `InitiativeID` tag, and click Activate.Answer
  2. B
    Access the Billing and Cost Management console of each individual member account, locate the Cost Allocation Tags list, and activate the `InitiativeID` tag.
  3. C
    Update the tag policy JSON document in AWS Organizations to include a boolean parameter that marks the `InitiativeID` tag as active for billing.
  4. D
    Wait for the next invoicing cycle to run, allowing the AWS Billing service to discover and populate the `InitiativeID` tag dynamically.

Answer

The administrator must navigate to the Cost Allocation Tags section in the management account's Billing and Cost Management console, select the `InitiativeID` tag, and activate it.
The correct action is to navigate to the Cost Allocation Tags section in the management account's Billing and Cost Management console, select the `InitiativeID` tag, and click Activate. In a multi-account environment consolidated under AWS Organizations, only the management account can manage and activate cost allocation tags. Additionally, user-defined tags are never activated for cost allocation automatically upon creation or policy application; they require manual activation in the Billing console before they can be used as filters in tools like AWS Budgets and Cost Explorer.

Step-by-Step Solution

1
Determine where cost allocation tags are managed in a multi-account setup.
Identify that in AWS Organizations, cost allocation tags for consolidated billing must be managed and activated in the management (payer) account.
Member accounts do not have the authority to activate cost allocation tags for the consolidated billing family.
2
Identify the difference between applying tags / enforcing tag policies and activating them for cost allocation.
Realize that applying tags to resources or enforcing them via AWS Organizations tag policies is separate from cost allocation tracking. User-defined tags must be explicitly activated in the Billing console to be used in Cost Explorer, AWS Budgets, or billing reports.
AWS does not automatically track costs by new user-defined tags to prevent billing data clutter and performance overhead.
3
Formulate the correct configuration step.
Access the Billing and Cost Management console of the management account, go to Cost Allocation Tags, select the `InitiativeID` tag under user-defined cost allocation tags, and activate it.
This registers the tag key for cost tracking, making it available as a filter in AWS Budgets and Cost Explorer within 24 hours.

Key Concept

Activation of User-Defined Cost Allocation Tags in AWS Organizations
Estimated Time:1m 30s
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