A company wants to organize its cloud billing records so that the spending of each internal team is clearly identifiable. Which approach will allow the accounting department to generate detailed reports that break down costs by team for every resource used?
Implement a consistent resource-naming convention that includes the team name.
Activate cost allocation tags that contain team names and include those tags in Cost Explorer and cost reports.
Create a dedicated AWS account for every team to keep their costs separate.
Create a separate AWS Budget for each team and monitor their spending limits.
Activating user-defined cost allocation tags that include each team's name lets the company label resources and have those tag keys appear as columns in Cost Explorer and the Cost and Usage Report. Once activated, charges are automatically grouped by these tags, giving finance the per-team visibility they need.
Using a consistent naming convention helps humans recognize resources in the console but does not carry through to billing data. AWS Budgets can track total spend and send alerts but will not categorize historical charges by team. Creating separate AWS accounts for every team does isolate costs, yet it adds operational overhead and is unnecessary if granular tagging meets the requirement.
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AWS Cloud Practitioner CLF-C02
Billing, Pricing, and Support
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