Microsoft Azure Solutions Architect Expert AZ-305 Practice Question
Contoso Ltd. operates two autonomous business units named Retail and Manufacturing, each with several Azure subscriptions for development, test, and production workloads. Corporate governance requires that every resource company-wide include the tag "CostCenter", while only Retail resources may be deployed in the East US or West Europe regions. Finance needs to see consolidated cost reports per business unit. You must recommend a management hierarchy that satisfies the requirements and minimizes administrative overhead. Which design should you recommend?
Keep a single management group that contains all subscriptions. Assign both policies separately to every subscription and use subscription-level cost analysis for business-unit reporting.
Create separate subscriptions for each environment in both business units. Assign the required policies at every resource-group scope and rely on manual tagging for cost reporting.
Create a root management group with two child management groups named Retail and Manufacturing. Move each business unit's subscriptions into its respective child group. Assign the CostCenter tag policy at the root group and the location restriction policy at the Retail group. Use Cost Management at the management-group scope for business-unit cost reporting.
Create an additional Azure AD tenant for each business unit and delegate management through Azure Lighthouse, applying the policies at the subscription level inside each tenant.
Using a single management-group hierarchy with one root management group and a child management group per business unit provides a clear separation that matches the company's organizational structure. Assigning the CostCenter tag policy at the root automatically enforces the tag on all descendant subscriptions, meeting the enterprise-wide tagging requirement. Assigning the location restriction policy only to the Retail management group scopes that control to Retail subscriptions without affecting Manufacturing. Because Azure Cost Management can aggregate costs at the management-group scope, finance can view a roll-up of all Retail or all Manufacturing costs without needing per-subscription reports. The design therefore meets all governance and reporting needs with the fewest individual policy assignments and no additional tenants or per-subscription configuration, unlike the alternative approaches presented.
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Microsoft Azure Solutions Architect Expert AZ-305
Design identity, governance, and monitoring solutions
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