An organization wants to separate billing and access control for two departments, each with multiple projects. They also need to apply common IAM policies to all projects in a department. What is the recommended way to structure their resource hierarchy?
Folders under the organization node establish a resource hierarchy where each department's folder can have IAM policies and billing defaults applied, cascading to all projects within. This separates access control by making the department folder an administrative boundary, and also allows aggregated billing per folder by linking a dedicated billing account to that folder, which individual projects inherit.
Why this answer
Folders sit below the organization node and above projects. They allow grouping projects by department and applying IAM policies at the folder level, which are inherited by all projects within.