- A
Apply a CanNotDelete lock to the production resource group.
Why wrong: A lock can protect resources from deletion, but it does not add or correct tags. It does not meet the cost-tracking requirement.
- B
Assign a modify policy for CostCenter=PRD at the production resource group scope and create a remediation task.
A modify policy can add or correct the tag without blocking deployment, which matches the business requirement. Assigning it at the resource-group scope limits the effect to only that production workload, and remediation updates existing resources so both old and new items converge on the same tag value.
- C
Assign Contributor on the subscription and require teams to enter the tag manually.
Why wrong: Contributor only grants permissions; it does not enforce consistent tagging. Manual entry also creates drift and depends on user discipline, which the business specifically wants to avoid.
- D
Set the tag on the management group and expect all resources to inherit it automatically.
Why wrong: Management groups do not natively behave like tag templates for resources. A tag set there will not automatically flow to every resource in the way this requirement needs.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A finance team wants every resource created in one production resource group to carry CostCenter=PRD automatically. They do not want deployments blocked if a team forgets the tag, but they do want existing resources and future resources in that resource group to converge on the correct tag value. What should the administrator configure?
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
Assign a modify policy for CostCenter=PRD at the production resource group scope and create a remediation task.
Option B is correct because Azure Policy with a 'modify' effect can automatically add or correct the CostCenter tag on resources within the specified scope. By assigning the policy at the production resource group scope and creating a remediation task, the policy will audit existing resources and, via a managed identity, apply the tag value to non-compliant resources without blocking deployment. This satisfies the requirement for automatic convergence without preventing creation if the tag is missing.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Apply a CanNotDelete lock to the production resource group.
Why it's wrong here
A lock can protect resources from deletion, but it does not add or correct tags. It does not meet the cost-tracking requirement.
- ✓
Assign a modify policy for CostCenter=PRD at the production resource group scope and create a remediation task.
Why this is correct
A modify policy can add or correct the tag without blocking deployment, which matches the business requirement. Assigning it at the resource-group scope limits the effect to only that production workload, and remediation updates existing resources so both old and new items converge on the same tag value.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Assign Contributor on the subscription and require teams to enter the tag manually.
Why it's wrong here
Contributor only grants permissions; it does not enforce consistent tagging. Manual entry also creates drift and depends on user discipline, which the business specifically wants to avoid.
- ✗
Set the tag on the management group and expect all resources to inherit it automatically.
Why it's wrong here
Management groups do not natively behave like tag templates for resources. A tag set there will not automatically flow to every resource in the way this requirement needs.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy's 'modify' effect (which allows non-blocking correction) with 'deny' or 'append' effects (which block or add without remediation), or assuming that tags on management groups automatically propagate to resources, which they do not.
Detailed technical explanation
How to think about this question
The 'modify' effect in Azure Policy uses a remediation task that leverages a system-assigned managed identity to update existing resources. The policy definition must include a 'condition' to detect non-compliance (e.g., missing or incorrect CostCenter tag) and a 'details' block specifying the tag name and value. Remediation tasks can be triggered manually or on a schedule, and they operate asynchronously, ensuring convergence without blocking new deployments (which would occur with 'deny' or 'append' effects).
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.
TExam Day Tips
- 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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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FAQ
Questions learners often ask
What does this AZ-104 question test?
Manage Azure Identities and Governance — This question tests Manage Azure Identities and Governance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Assign a modify policy for CostCenter=PRD at the production resource group scope and create a remediation task. — Option B is correct because Azure Policy with a 'modify' effect can automatically add or correct the CostCenter tag on resources within the specified scope. By assigning the policy at the production resource group scope and creating a remediation task, the policy will audit existing resources and, via a managed identity, apply the tag value to non-compliant resources without blocking deployment. This satisfies the requirement for automatic convergence without preventing creation if the tag is missing.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
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