A company has a monthly budget of $10,000 for its development AWS account. The project manager wants to receive an automated email alert when the actual costs for the current month reach 80% of the budget. The project manager does not want to build any custom code or manage any infrastructure for this alert. Which approach should the project manager take to meet these requirements?
Correct. AWS Budgets allows you to set a cost budget and define alerts for actual or forecasted costs. When the actual costs reach the 80% threshold, Budgets sends a notification to the specified email address. This is a fully managed feature with no custom code or infrastructure required.
Why this answer
AWS Budgets allows you to set a monthly budget of $10,000 and configure an alert to trigger when actual costs reach 80% ($8,000). The alert can send an email notification directly without requiring any custom code or infrastructure management, meeting the project manager's requirements exactly.
Exam trap
The trap here is that candidates may overcomplicate the solution by choosing a custom-coded approach (Lambda) or a reporting tool (Cost Explorer) when AWS Budgets provides a simple, managed, and code-free alerting mechanism directly in the Billing and Cost Management console.
Why the other options are wrong
Cost allocation tags are used for tracking and categorizing costs, not for setting budgets or alerts. Amazon SNS alone cannot monitor costs or trigger alerts based on tag cost thresholds without custom code.
AWS Cost Explorer does not support setting alerts or automated email notifications; it is a visualization and analysis tool only.
The project manager does not want to build any custom code or manage any infrastructure, but this option requires creating and managing an AWS Lambda function, which violates that constraint.
When would these options actually be correct?
This approach would be correct if the requirement was to receive a notification when costs associated with a specific tag (e.g., a project or department) reach a certain threshold, and the company is willing to build a custom solution using Lambda or similar to query the API and publish to SNS.
If the requirement were to generate a recurring cost analysis report (e.g., weekly usage report) without alerts, and the user wanted to receive it via email, Cost Explorer reports with scheduled delivery would be correct.
This option would be correct if the requirements included custom logic (e.g., complex cost calculations, multi-account aggregation) or integration with other systems, and the candidate was willing to manage serverless infrastructure.
Why candidates pick the wrong answer
Candidates may think cost allocation tags can directly trigger alerts, or that SNS can monitor costs, because both are related to billing and notifications, but they lack the built-in budget alerting capability of AWS Budgets.
Candidates may confuse Cost Explorer's reporting capabilities with alerting features, assuming it can trigger notifications like AWS Budgets.
Candidates may think AWS Budgets is insufficient for custom thresholds or alerts, and assume a Lambda-based solution offers more flexibility, overlooking the 'no custom code' requirement.