- A
Reassign the policy at a lower scope so it applies more quickly.
Why wrong: Changing the assignment scope does not by itself update already deployed noncompliant resources. The policy is already assigned; what is missing is the action that applies the effect to existing resources.
- B
Create a remediation task for the policy assignment.
Policy assignment alone evaluates future requests, but existing resources often need remediation before the policy effect is applied to them. A remediation task triggers the policy logic against already deployed resources and applies the configured correction when the managed identity has enough permissions. That is how missing tags on older VMs are brought into compliance.
- C
Change the policy effect from modify to audit.
Why wrong: Audit would only report noncompliance instead of fixing it. That would make the compliance report more visible, but it would not add the missing CostCenter tag to any virtual machine.
- D
Add a CanNotDelete lock to the virtual machines.
Why wrong: A lock protects against deletion or modification, depending on the lock type, but it does not remediate tag compliance. It can actually make future configuration changes harder, not easier.
AZ-104 Manage Azure Identities and Governance Practice Question
This AZ-104 practice question tests your understanding of manage azure identities and governance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 modify policy that appends a CostCenter tag was assigned to a management group. The policy shows as assigned, but older virtual machines still lack the tag. What must the administrator do to update those existing resources?
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
Create a remediation task for the policy assignment.
The 'modify' policy effect appends the CostCenter tag to new or updated resources automatically, but it does not retroactively apply to existing resources. To update older virtual machines that lack the tag, the administrator must create a remediation task for the policy assignment. This task uses Azure Policy's 'deployIfNotExists' or 'modify' effect to trigger a deployment that evaluates and corrects non-compliant existing resources.
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.
- ✗
Reassign the policy at a lower scope so it applies more quickly.
Why it's wrong here
Changing the assignment scope does not by itself update already deployed noncompliant resources. The policy is already assigned; what is missing is the action that applies the effect to existing resources.
- ✓
Create a remediation task for the policy assignment.
Why this is correct
Policy assignment alone evaluates future requests, but existing resources often need remediation before the policy effect is applied to them. A remediation task triggers the policy logic against already deployed resources and applies the configured correction when the managed identity has enough permissions. That is how missing tags on older VMs are brought into compliance.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Change the policy effect from modify to audit.
Why it's wrong here
Audit would only report noncompliance instead of fixing it. That would make the compliance report more visible, but it would not add the missing CostCenter tag to any virtual machine.
- ✗
Add a CanNotDelete lock to the virtual machines.
Why it's wrong here
A lock protects against deletion or modification, depending on the lock type, but it does not remediate tag compliance. It can actually make future configuration changes harder, not easier.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume a 'modify' policy effect automatically applies to all existing resources, but in reality, it only applies to new or updated resources unless a remediation task is explicitly created.
Detailed technical explanation
How to think about this question
Azure Policy's 'modify' effect uses a 'remediation task' to apply the policy to existing non-compliant resources by leveraging a managed identity and a deployment template. The remediation task runs asynchronously and can be triggered manually or via a schedule, ensuring that resources at any scope (management group, subscription, resource group) are updated. Under the hood, the task creates a deployment that executes the 'modify' operation, which uses ARM API calls to update the resource properties.
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
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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: Create a remediation task for the policy assignment. — The 'modify' policy effect appends the CostCenter tag to new or updated resources automatically, but it does not retroactively apply to existing resources. To update older virtual machines that lack the tag, the administrator must create a remediation task for the policy assignment. This task uses Azure Policy's 'deployIfNotExists' or 'modify' effect to trigger a deployment that evaluates and corrects non-compliant existing resources.
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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