Concepts
They provide a way to assign metadata to AWS resources, which can then be used to organize and identify costs for billing and management purposes. These tags are vital for anyone preparing for the AWS Certified Cloud Practitioner exam and essential to understand when working with AWS services.
Types of Cost Allocation Tags
AWS provides two types of cost allocation tags:
AWS-Generated Cost Allocation Tags
These are automatically created by AWS for services that support tagging. They provide basic information such as the service that generated the cost and the AWS region where the service is being used.
- aws:createdBy
- aws:resourceType
User-Defined Cost Allocation Tags
These tags are created by users to track costs by their own specified categories and values. They can apply to specific projects, environments (like production or dev), cost centers, or any custom category relevant to the organization.
- Project: ProjectName
- Environment: Production
- CostCenter: CC123
Activation of Cost Allocation Tags
User-defined cost allocation tags should be activated to appear in billing reports. AWS does not include these tags in cost allocation reports by default.
To activate user-defined cost allocation tags:
- Navigate to the Billing and Cost Management console.
- Select “Cost Allocation Tags” under the Billing section.
- Under the “User-Defined Cost Allocation Tags” section, activate the tags you plan to use.
# For someone using AWS CLI:
aws resourcegroupstaggingapi.tag-resources \
–resource-arn-list arn:aws:s3:::example-bucket \
–tags Environment=Production
Billing Reports and Cost Allocation
The AWS Cost and Usage Report (CUR) is a detailed view of your AWS costs and usage. It includes information about usage, costs, and Reserved Instance reporting.
Key Components in CUR related to Cost Allocation Tags:
- Resource IDs: Every cost entry is associated with a specific AWS resource specified by its ID.
- Cost Categories: Logical groupings of costs based on user-defined rules and tags.
- Usage Types and Operations: What type of usage (e.g., data transfer, instance running hours) and the specific operation (e.g., PUT, GET for S3).
- Pricing Information: Detailed pricing for each line item including discounts and credits.
To include cost allocation tags in CUR:
- Ensure tags are active.
- Configure the Cost and Usage Report to include the resource IDs and tags.
- Access the report from the S3 bucket to which it is delivered and analyze data based on tags.
Example of Tagging and Its Reflection on Billing Reports:
| Service | aws:createdBy | Environment | Project | Cost |
|---|---|---|---|---|
| Amazon EC2 | User123 | Dev | ProjectA | $100 |
| Amazon S3 | User456 | Prod | ProjectB | $50 |
| Amazon RDS | User789 | Dev | ProjectA | $200 |
| Total | $350 |
Analyzing Reports with Tags
With cost allocation tags properly implemented and activated, you can perform precise cost analytics. For instance, you can filter the CUR for tags like Project: ProjectA to view all the costs associated with that project. AWS also provides visualization tools like AWS Cost Explorer where you can visualize the tagged resources and their associated costs.
By utilizing cost allocation tags effectively, organizations can gain granular control over their AWS billing, ensuring efficient resource management, and financial oversight. Understanding and implementing these tags is fundamental for the AWS Certified Cloud Practitioner exam and for any individual or organization aiming to maintain a well-organized AWS budget.
Answer the Questions in Comment Section
True or False: AWS automatically tags each resource with an AWS generated cost allocation tag.
- A. True
- B. False
Answer: B. False
Explanation: AWS does not automatically tag resources. Users must manually activate AWS-generated cost allocation tags, and they can create custom tags for resources.
What is the purpose of cost allocation tags in AWS?
- A. To organize resources by project
- B. To manage AWS permissions
- C. To help allocate costs on AWS billing reports
- D. To replace detailed billing reports
Answer: C. To help allocate costs on AWS billing reports
Explanation: Cost allocation tags are used to break down AWS costs by custom criteria, making it easier to analyze and allocate costs on AWS billing reports.
Which type of cost allocation tag requires the user to activate it before it appears on the billing report?
- A. AWS generated cost allocation tag
- B. User-defined cost allocation tag
Answer: A. AWS generated cost allocation tag
Explanation: AWS generated cost allocation tags must be activated by the user to start appearing in the cost allocation reports, whereas user-defined tags appear automatically once they’re applied to resources and are activated for cost allocation purposes.
True or False: AWS Cost and Usage Report includes Reserved Instances (RIs) utilization and costs by default.
- A. True
- B. False
Answer: A. True
Explanation: The AWS Cost and Usage Report provides detailed information about the usage and costs, including those associated with Reserved Instances.
When can a user-defined cost allocation tag start appearing in AWS Cost and Usage Reports?
- A. Immediately after the resource is tagged
- B. After 24 hours
- C. At the beginning of the next billing cycle
- D. Up to three months prior
Answer: B. After 24 hours
Explanation: User-defined cost allocation tags may take up to 24 hours to appear in the AWS Cost and Usage Reports after they’re associated with a resource.
How often can AWS Cost and Usage Reports be delivered?
- A. Hourly
- B. Daily
- C. Monthly
- D. All of the above
Answer: D. All of the above
Explanation: AWS Cost and Usage Reports can be set up to be delivered hourly, daily, or monthly depending on the user’s preferences.
True or False: AWS Cost and Usage Report can only be accessed via the AWS Management Console.
- A. True
- B. False
Answer: B. False
Explanation: AWS Cost and Usage Reports can be accessed via the AWS Management Console, but they can also be obtained via API or downloaded from the Amazon S3 bucket where they are stored.
What must you do before AWS applies user-defined cost allocation tags to your AWS bill?
- A. Wait for the end of the month
- B. Delete all existing tags
- C. Activate the tags in the Billing and Cost Management console
- D. Contact AWS support
Answer: C. Activate the tags in the Billing and Cost Management console
Explanation: You must activate user-defined cost allocation tags in the Billing and Cost Management console before they can be applied to your AWS bill.
True or False: The cost of tags themselves is included in the AWS billing report.
- A. True
- B. False
Answer: B. False
Explanation: Tags are just labels and do not incur any costs; therefore, the cost of tags is not included in the AWS billing report.
Which report should be used to obtain the most comprehensive data set for AWS cost and usage?
- A. AWS Monthly Cost Allocation Report
- B. AWS Cost and Usage Report
- C. AWS Cost Explorer
- D. AWS Budget Reports
Answer: B. AWS Cost and Usage Report
Explanation: The AWS Cost and Usage Report is the most detailed report available, providing data regarding usage, pricing, and cost for all AWS services.
True or False: Tags applied to Amazon EC2 instances automatically propagate to the Amazon EBS volumes attached to those instances.
- A. True
- B. False
Answer: B. False
Explanation: Tags must be explicitly applied to Amazon EBS volumes; they do not automatically propagate from Amazon EC2 instances or other resources.
In AWS, which of the following are valid uses of cost allocation tags? (Select two)
- A. Access control
- B. Resource grouping and filtering in AWS Cost Explorer
- C. Tracking costs by department
- D. Reducing overall costs
- E. Automatically starting and stopping resources
Answer: B. Resource grouping and filtering in AWS Cost Explorer and C. Tracking costs by department
Explanation: Cost allocation tags are often used for grouping and filtering resources in AWS Cost Explorer and tracking costs by department or other criteria to provide better clarity in cost management. They do not control access, reduce overall costs, or automatically manage resource states.
Thank you for the detailed explanation on cost allocation tags for the AWS Cost and Usage Report. It really helped me clear some concepts for the AWS Certified Cloud Practitioner exam!
Can someone explain how to use user-defined cost allocation tags effectively for complex billing scenarios?
The information on how AWS-generated tags work was eye-opening. I had no idea AWS could automatically tag resources for cost allocation!
I encountered an issue where my cost allocation tags are not appearing in the billing report. What could be the problem?
Great post! The section on the AWS Cost and Usage Report (CUR) helped me understand how to break down my AWS bill to the smallest details.
What’s the difference between resource tags and cost allocation tags?
The breakdown of tag activation was really helpful. Thanks!
How do Cost Categories impact the AWS Cost and Usage Report?