A company operates 10 AWS accounts under AWS Organizations. Each account runs multiple projects, and the company tags all resources with a 'Project' tag (e.g., 'Project-A', 'Project-B'). The finance team wants to view the consolidated monthly bill broken down by the value of the 'Project' tag across all accounts. Which AWS feature should the team use to achieve this?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
Create an AWS Budget for each 'Project' tag value and set cost alerts to track spending per project.
AWS Budgets allows you to set cost thresholds and receive alerts, but it does not natively break down the consolidated bill by tag values. Budgets can be filtered by tags, but they are not designed to produce a full cost breakdown report by project across accounts.
Best answer
Activate the 'Project' tag as a cost allocation tag in the AWS Organizations payer account's Billing and Cost Management console.
This is the correct approach. In the Billing and Cost Management console, you can activate user-defined cost allocation tags. Once activated, AWS includes the tag in your cost and usage reports, allowing you to view costs grouped by the 'Project' tag value in AWS Cost Explorer and the Cost and Usage Report.
Distractor review
Use AWS Trusted Advisor to generate a cost optimization report that shows which projects are over-spending based on the 'Project' tag.
AWS Trusted Advisor provides general best practice recommendations for cost optimization, performance, security, and fault tolerance. However, it does not break down costs by custom tags or produce per-project billing reports.
Distractor review
Configure AWS Compute Optimizer to analyze costs per project and recommend resource downsizing based on the 'Project' tag.
AWS Compute Optimizer analyzes resource utilization and provides rightsizing recommendations for EC2, Auto Scaling groups, EBS volumes, and Lambda functions. It does not break down billing costs by tag values or produce consolidated billing reports by project.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A developer needs to launch a test server for a new application prototype. The developer logs into the AWS Management Console, selects an Amazon EC2 instance type, configures the security group, and starts the instance. The instance is running within two minutes, and the developer did not need to submit a formal request to the company's IT procurement team or wait for approval from a cloud administrator. Which essential characteristic of cloud computing does this scenario best demonstrate?
Question 2
A solutions architect is planning a new web application on AWS. The workload will include 3 Amazon EC2 instances (t3.medium) running 24/7, an Application Load Balancer, and an Amazon RDS for MySQL db.t3.small database. The architect needs to estimate the monthly cost for the first year, considering different purchasing options (On-Demand, 1-year All Upfront Reserved Instance, and Compute Savings Plan). Which AWS tool should the architect use to create this estimate?
Question 3
A company's development team frequently needs temporary test environments. A developer can log into the AWS Management Console, select an Amazon EC2 instance type, configure storage, and launch the instance within minutes without any interaction with the IT infrastructure team. This capability is an example of which essential characteristic of cloud computing?
Question 4
A company's finance team needs to analyze AWS spending in detail. They require a report that includes hourly cost data for each AWS service, each individual resource (e.g., a specific EC2 instance), and any cost allocation tags applied. The team plans to export this data to an Amazon S3 bucket and then import it into a custom business intelligence (BI) analytics dashboard. Which AWS tool should the finance team use to generate this level of detailed cost data?
Question 5
A company uses AWS for its development environment. The finance team wants to set a monthly budget of $10,000. They want to receive an email notification when the actual costs reach 80% of the budget ($8,000) and again when costs exceed the budget. The team needs a managed AWS service that can automatically send these alerts without requiring custom code or third-party tools. Which AWS service should the team use?
Question 6
A company uses AWS Organizations to manage multiple accounts. The security team needs to enforce a policy that restricts SSH access (port 22) from the internet (0.0.0.0/0) in all VPCs across all accounts. The team wants to centrally define the allowed rules and automatically apply them to newly created VPCs and security groups, while also automatically remediating any existing non-compliant security groups. Which AWS service should the team use?
FAQ
Questions learners often ask
What does this CLF-C02 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Activate the 'Project' tag as a cost allocation tag in the AWS Organizations payer account's Billing and Cost Management console. — Cost Allocation Tags allow you to tag AWS resources (like EC2 instances, S3 buckets) with user-defined keys and values, and then generate cost and usage reports that break down charges by those tags. When enabled at the payer account level in AWS Organizations, the tag-based cost data appears in the consolidated bill and in AWS Cost Explorer reports. This gives finance teams the ability to track costs by project, department, or any other dimension directly in the billing data.
What should I do if I get this CLF-C02 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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