- A
Ask users to add the tag manually to every resource
Why wrong: Manual tagging is prone to mistakes and does not enforce a consistent value.
- B
Assign a Reader role to the finance team
Why wrong: Reader controls access, not tag creation or tag inheritance behavior.
- C
Apply a CanNotDelete lock to the resource group
Why wrong: A lock helps protect resources from deletion, but it does not create or copy tags.
- D
Use Azure Policy to inherit the CostCenter tag from the resource group
Azure Policy can enforce consistent tagging by inheriting a tag value from the resource group to child resources. This reduces manual work and helps ensure that new resources receive the same CostCenter value automatically. It is a governance control, so it is the right feature when the goal is standardization rather than access control.
Inherit Tags from Resource Group Using Azure Policy
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.
The finance team wants every resource created in one resource group to carry the same CostCenter tag automatically. They want to reduce manual entry and keep the tag value consistent. What should you 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
Use Azure Policy to inherit the CostCenter tag from the resource group
Option D is correct because Azure Policy can enforce tag inheritance from a resource group to all resources within it using the 'Inherit a tag from the resource group' built-in policy effect. This ensures the CostCenter tag is automatically applied to every new or existing resource without manual entry, maintaining consistency and reducing administrative overhead.
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.
- ✗
Ask users to add the tag manually to every resource
Why it's wrong here
Manual tagging is prone to mistakes and does not enforce a consistent value.
When this WOULD be correct
If the question asked how to allow the finance team to view resource costs without making changes, assigning a Reader role would be correct. For example: 'The finance team needs to review resource costs but should not be able to modify resources. What should you configure?'
- ✗
Assign a Reader role to the finance team
Why it's wrong here
Reader controls access, not tag creation or tag inheritance behavior.
When this WOULD be correct
In a scenario where the finance team needs to audit or review resource costs and tags across subscriptions, assigning a Reader role at the subscription or resource group level would grant them read-only access to view tag values and cost data without making changes.
- ✗
Apply a CanNotDelete lock to the resource group
Why it's wrong here
A lock helps protect resources from deletion, but it does not create or copy tags.
When this WOULD be correct
If the question asked for a method to prevent accidental deletion of critical resources in a resource group, applying a CanNotDelete lock would be the correct answer.
- ✓
Use Azure Policy to inherit the CostCenter tag from the resource group
Why this is correct
Azure Policy can enforce consistent tagging by inheriting a tag value from the resource group to child resources. This reduces manual work and helps ensure that new resources receive the same CostCenter value automatically. It is a governance control, so it is the right feature when the goal is standardization rather than access control.
Related concept
Read the scenario before looking for a memorised answer.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓Use Azure Policy to inherit the CostCenter tag from the resource groupCorrect answer▾
Why this is correct
Azure Policy can enforce consistent tagging by inheriting a tag value from the resource group to child resources. This reduces manual work and helps ensure that new resources receive the same CostCenter value automatically. It is a governance control, so it is the right feature when the goal is standardization rather than access control.
✗Ask users to add the tag manually to every resourceWrong answer — click to see why▾
Why this is wrong here
Manual tagging does not reduce manual entry or ensure consistency; it relies on users to remember and correctly apply the tag every time, which contradicts the requirement for automation and consistency.
★ When this WOULD be the correct answer
If the question asked how to allow the finance team to view resource costs without making changes, assigning a Reader role would be correct. For example: 'The finance team needs to review resource costs but should not be able to modify resources. What should you configure?'
Why candidates choose this
Candidates may think manual tagging is a simple, direct solution and underestimate the need for automation, or they may not fully understand Azure Policy capabilities for tag inheritance.
✗Assign a Reader role to the finance teamWrong answer — click to see why▾
Why this is wrong here
Assigning a Reader role to the finance team allows them to view resources but does not automatically apply or enforce tags on resources. It does not reduce manual entry or ensure tag consistency.
★ When this WOULD be the correct answer
In a scenario where the finance team needs to audit or review resource costs and tags across subscriptions, assigning a Reader role at the subscription or resource group level would grant them read-only access to view tag values and cost data without making changes.
Why candidates choose this
Candidates may confuse role-based access control (RBAC) with governance features like Azure Policy, thinking that granting read access somehow enables automatic tagging or enforcement.
✗Apply a CanNotDelete lock to the resource groupWrong answer — click to see why▾
Why this is wrong here
Applying a CanNotDelete lock prevents deletion of the resource group or its resources but does not automatically apply or enforce tags, so it does not meet the requirement to inherit the CostCenter tag.
★ When this WOULD be the correct answer
If the question asked for a method to prevent accidental deletion of critical resources in a resource group, applying a CanNotDelete lock would be the correct answer.
Why candidates choose this
Candidates may confuse locks with policies, thinking that a lock can enforce tag inheritance, or they may assume that preventing deletion somehow ensures tag consistency.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy's tag inheritance with Azure RBAC roles or resource locks, as candidates often mistakenly think a Reader role or a lock can enforce tag consistency, when only Policy can automatically apply tags at scale.
Detailed technical explanation
How to think about this question
Azure Policy uses a policy definition with the 'modify' or 'append' effect to automatically add or inherit tags. The 'Inherit a tag from the resource group' built-in policy uses a 'modify' effect with a 'condition' to evaluate resources that lack the tag, then applies the resource group's tag value during resource creation or modification. This leverages Azure Resource Manager's evaluation pipeline, ensuring compliance without user intervention.
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: Use Azure Policy to inherit the CostCenter tag from the resource group — Option D is correct because Azure Policy can enforce tag inheritance from a resource group to all resources within it using the 'Inherit a tag from the resource group' built-in policy effect. This ensures the CostCenter tag is automatically applied to every new or existing resource without manual entry, maintaining consistency and reducing administrative overhead.
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
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