A company uses multiple AWS accounts managed through AWS Organizations. The finance team wants to see a consolidated view of all costs across accounts, and also wants to filter costs by specific projects using custom tags that are applied to resources. The team has already created tag keys and applied them to resources in all accounts. What additional step must the team take in the Management Account to ensure these tags appear as cost allocation dimensions in AWS Cost Explorer?
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.
Best answer
Activate the tag keys for cost allocation tracking.
Correct. After creating and applying tags to resources, the tags must be activated for cost allocation in the AWS Billing and Cost Management console. Only activated tags appear as dimensions in Cost Explorer and other cost management tools.
Distractor review
Enable the AWS Cost Explorer default reports.
Incorrect. Enabling default reports in Cost Explorer provides pre-built visualizations but does not cause tags to become available as filter dimensions. Tag activation is a separate prerequisite.
Distractor review
Create a budget using AWS Budgets with the tag filters.
Incorrect. While budgets can be filtered by tags, the tags must first be activated for cost allocation. Creating a budget does not activate the tags themselves.
Distractor review
Configure the AWS Support plan to include cost analysis.
Incorrect. AWS Support plan level (e.g., Business, Enterprise) does not affect the availability of tag-based cost filtering. Cost allocation tag activation is independent of the Support plan.
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 tag keys for cost allocation tracking. — Cost allocation tags allow you to tag AWS resources with metadata and then use those tags to organize and track costs in AWS Cost Explorer, AWS Cost and Usage Reports (CUR), and AWS Budgets. After creating and applying the tags to resources, the tags must be activated for cost allocation tracking. Only activated tags appear as filterable dimensions in Cost Explorer. The activation is done in the Management Account of an AWS Organization and applies to all member accounts. Option A is correct because activating the tags is the necessary step. Option B is incorrect because enabling default reports is not related to tag activation. Option C is incorrect because creating budgets using tag filters is possible only after the tags are activated. Option D is incorrect because the Support plan does not control tag visibility in cost tools.
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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