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AZ-900Chapter 110 of 138Objective 3.1

Azure Cost Allocation and Tags

This chapter covers Azure cost allocation and tagging. AZ-900 tests under 3.1.

5 min read
Beginner
Updated Aug 20, 2026
Editorial oversight: Johnson Ajibi· Security Systems Architect · MSc IT Security · IEEE Senior Member

A simple way to picture Azure Cost Allocation and Tags

Splitting Rent Fairly

Multiple roommates split rent fairly by assigning costs per person. Azure cost allocation assigns resource costs to departments or projects the same way.

How It Actually Works

Tags attach metadata to resources (department, project, environment). Cost allocation uses tags to group costs, enabling reporting by department or other categories.

Walk-Through

1

Create tags

Tag naming conventions are defined.

2

Apply tags

Tags are applied to resources.

3

Generate cost reports

Cost analysis reports costs by tag.

What This Looks Like on the Job

Resources tagged "Finance-Dept" costs are grouped separately from "Engineering-Dept" costs in billing reports.

How AZ-900 Actually Tests This

Objective 3.1 expects understanding of tags for cost tracking.

Key Takeaways

Tags enable cost grouping.

Costs can be allocated by tag.

Supports department/project cost tracking.

Frequently Asked Questions

How does Azure cost allocation work?

Tags attached to resources enable cost analysis and reporting grouped by department, project, or other categories.

Terms Worth Knowing

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