Practice Test

True or False: You can allocate AWS costs to shared resources that are used across multiple projects, applications, or departments within your enterprise.

  • True
  • False

Answer: True

Explanation: AWS cost allocation tags allow you to do this. They enable you to categorize and track your AWS costs across different dimensions (like departments, projects, applications) of your business.

In AWS, using cost allocation tags can provide more detailed information in AWS Cost and Usage Reports?

  • A. True
  • B. False

Answer: A. True

Explanation: Cost allocation tags add metadata to your AWS resources, allowing a more refined and detailed view of cost allocation in AWS Cost and Usage Reports.

Which of the following are types of tags that can be used for cost allocation in AWS? (Select all that apply)

  • A. User-defined cost allocation tags
  • B. AWS-generated cost allocation tags
  • C. System-defined cost allocation tags
  • D. Resource-specific cost allocation tags

Answer: A. User-defined cost allocation tags, B. AWS-generated cost allocation tags

Explanation: Only user-defined and AWS-generated tags can be used for cost allocation.

True or False: AWS Cost and Usage Report contains only AWS usage data?

  • True
  • False

Answer: False

Explanation: AWS Cost and Usage Report contains not only usage data but also cost data, and it can even incorporate reserved instance (RI) savings and savings related to AWS credits.

In AWS, which of the following are included in the AWS Cost and Usage Reports? (Select all that apply)

  • A. Individual AWS service usage
  • B. Detailed cost data
  • C. Reserved instance (RI) savings
  • D. Savings from AWS credits

Answer: All of them

Explanation: AWS Cost and Usage Reports provide a detailed breakdown of your AWS usage and costs, including Reserved Instance (RI) savings and savings from AWS credits.

True or False: All AWS services support cost allocation tags?

  • True
  • False

Answer: False

Explanation: Not all AWS services support cost allocation tags. It depends on the particular service.

What type of tag should be activated to appear in AWS Cost and Usage Report?

  • A. User-defined tag
  • B. AWS-generated tag

Answer: Both

Explanation: Both user-defined and AWS-generated tags need to be activated to appear in the AWS Cost and Usage Report.

True or False: You can retrospectively apply cost allocation tags to your AWS usage and cost data.

  • True
  • False

Answer: False

Explanation: AWS does not support retrospective tagging. Cost allocation tags only apply to costs incurred after the tag was created and activated.

Cost Explorer is a tool used to view and analyze your costs and usage. Which of the following can be done using Cost Explorer?

  • A. Identify trends
  • B. Pinpoint cost drivers
  • C. Analyze your Reserved Instance (RI) utilization
  • D. All of the above

Answer: D. All of the above

Explanation: AWS Cost Explorer is a powerful tool that lets you view and analyze your costs and usage, including your Reserved Instance utilization.

True or False: Cost allocation tags can be used to manage AWS bills more effectively.

  • True
  • False

Answer: True

Explanation: By applying and managing cost allocation tags, you can gain better visibility into your AWS costs and usage, leading to more effective bill management.

Interview Questions

What is cost allocation tagging in AWS?

Cost allocation tagging is a method provided by AWS to organize and track your AWS costs. You can assign metadata to AWS resources consisting of unique key-value pairs. It helps in understanding the cost breakdown much easier when you get your AWS Cost and Usage Report.

What is AWS Cost and Usage Report?

AWS Cost and Usage Report is a comprehensive report of your AWS usage, broken down by services, accounts, and tags that you’ve defined. This report provides the necessary data to access the details and drivers of your costs.

What are the two types of cost allocation tags that are available in AWS?

The two types of cost allocation tags that are available in AWS are User-defined cost allocation tags and AWS-generated cost allocation tags.

What are user-defined cost allocation tags in AWS?

User-defined cost allocation tags are the key-value pairs that a user creates and assigns to their AWS resources. It helps in categorizing resources for cost allocation.

What are AWS-generated cost allocation tags?

AWS-generated cost allocation tags are automatically applied to resources when they are created. These tags include information such as the Amazon Resource Name (ARN) and the name of the creation process that made the resource.

How is the AWS Cost and Usage Report related to cost allocation tags?

The AWS Cost and Usage Report utilizes the metadata from the cost allocation tags to provide a detailed breakdown of costs based on the assigned tags. This helps in understanding and managing costs efficiently.

Can existing tags be activated for cost allocation in AWS?

Yes, existing tags can be activated for cost allocation in AWS. Once a tag is activated, AWS generates a cost allocation report with cost usage data aggregated by active tags.

Can all AWS services be tagged for cost allocation?

Not all services can be tagged directly. However, most AWS services do support cost allocation tagging either at the per-resource level, or another level.

How can you view your AWS cost allocation report?

You can view your AWS cost allocation report through the AWS Management Console, AWS APIs, and AWS CLI.

What is the main purpose of using cost allocation tags in AWS?

The main purpose of using cost allocation tags in AWS is to categorize and track your AWS costs. When you get your AWS Cost and Usage Report, you can see your AWS costs broken down by tags, helping you better understand and manage your costs.

What is Cost Explorer in AWS?

AWS Cost Explorer is a user interface that provides comprehensive visualization of AWS costs and usage. It allows users to view data up to the last 13 months of cost, forecast how much is likely to spend for the next three months, and get recommendations for what Reserved Instances to purchase.

Can you aggregate your costs according to your own tagging strategy using Cost Explorer?

Yes, with the use of cost allocation tags, you can group and break down your costs in Cost Explorer according to your resources or by the categorization that aligns with your business’ needs.

How can you ensure cost allocation tags are correctly configured?

AWS has a ‘Tag Editor’ tool which can be used to manage and ensure cost allocation tags are correctly configured across all resources.

How long does it take for AWS to gather and include cost allocation tag data in the Cost and Usage Reports?

It generally takes about 24 hours for AWS to gather and include newly activated cost allocation tags in the Cost and Usage Reports.

Can you edit or delete cost allocation tags in AWS?

Yes, you can modify the key-value pairs or delete the cost allocation tags at any time in AWS. However, any changes made will not be retroactive; they will only apply to new cost allocation reports.

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