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Difficulty: MediumAzure Cost Management, Billing, and Resource Tags

An Azure administrator applies a tag with the key-value pair 'CostCenter: 10021' to an Azure resource group named 'Production-RG'. The administrator then deploys an Azure Virtual Machine and an Azure Storage account inside 'Production-RG' without applying any tags directly to these resources. When viewing the cost analysis in Azure Cost Management grouped by the 'CostCenter' tag, how will the costs of the Virtual Machine and the Storage account be represented?

  1. The costs will be grouped under the 'Untagged' label because resources do not automatically inherit tags from their parent resource group.Answer
  2. B
    The costs will be grouped under '10021' because resources automatically inherit tags from their parent resource group.
  3. C
    The costs will be grouped under '10021' only if the Virtual Machine and the Storage account are deployed in the same Azure region as the parent resource group.
  4. D
    The costs will be grouped under the 'Untagged' label because tags can only be applied to Azure subscriptions to track Capital Expenditure (CapEx).

Answer

The costs will be grouped under the 'Untagged' label because resources do not automatically inherit tags from their parent resource group.
In Azure, resources do not automatically inherit tags applied to their containing resource group. Therefore, when grouping cost analysis by a tag, any resource without the tag applied directly to it is grouped under the 'Untagged' category.

Step-by-Step Solution

1
Analyze the tag application boundary in Azure.
The tag 'CostCenter: 10021' is applied only to the resource group 'Production-RG', not to the individual resources inside it.
To determine how costs are grouped, we must check where the tag is explicitly applied.
2
Apply the Azure tag inheritance rule.
Azure resources do not inherit tags from their parent resource group.
Since the Virtual Machine and Storage account have no direct tags, they remain untagged for this specific key.
3
Determine how the costs will be grouped in Azure Cost Management.
The cost analysis tool groups the costs of these resources under the 'Untagged' label.
Grouping by a tag key only includes resources that have that tag key explicitly applied.

Key Concept

Azure resource tags are not inherited from resource groups to individual resources.
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Topics

Azure Cost Management, Billing, and Resource Tags

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