# Azure Cost Allocation and Tags

> Chapter 110 of the Courseiva AZ-900 curriculum — https://courseiva.com/learn/az-900/azure-cost-allocation

**Official objective:** 3.1 — Azure Management Governance

## Introduction

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

## 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.

## Core explanation

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

## Real-world context

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

## Exam focus

Objective 3.1 expects understanding of tags for cost tracking.

## Step by step

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.

## Key takeaways

- Tags enable cost grouping.
- Costs can be allocated by tag.
- Supports department/project cost tracking.

## FAQ

**How does Azure cost allocation work?**

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

---

Interactive version with quiz and diagrams: https://courseiva.com/learn/az-900/azure-cost-allocation