CV0-004 Operations and Support Practice Question
A cloud administrator is configuring cost management for a multi-account cloud environment. The company wants to allocate costs by department and project. Which TWO steps should the administrator take to achieve this? (Choose two.)
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Activate cost allocation tags in the billing console
Tagging resources and enabling cost allocation tags in the billing console allow cost breakdown by department and project. The cloud provider's cost reporting tools can then filter by these tags.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable the cloud provider's cost reporting tools
Why it's wrong here
Cost Explorer is a tool, but alone it doesn't allocate costs without tags.
- ✗
Create separate cloud accounts for each department
Why it's wrong here
Creating separate cloud accounts per department isolates billing but does not map costs to projects within a department, as the requirement demands project-level allocation. This approach is tempting because account-level separation is a common method for enforcing billing boundaries and security isolation, and it would be correct if the goal were solely to segregate costs by department without needing a finer project breakdown.
- ✓
Activate cost allocation tags in the billing console
Why this is correct
Must activate tags for them to appear in reports.
- ✗
Use the cloud provider's budgeting tools to set spending limits
Why it's wrong here
Budgets set alerts, not cost allocation.
- ✓
Apply tags to resources such as Department and Project
Why this is correct
Tags enable cost allocation.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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