- A
Azure RBAC, because it controls whether users can create resources.
Why wrong: This is incorrect because RBAC controls who can perform actions, not whether a resource configuration meets a compliance rule.
- B
Azure Policy, because it can evaluate and enforce required resource properties.
This is correct because Azure Policy is designed to enforce standards and assess compliance. A policy can require a tag such as costCenter and deny or audit noncompliant resource creation. RBAC could still allow the user to create storage accounts, but Policy adds the configuration rule that controls whether the deployment is compliant.
- C
A resource lock, because it can force resources to use tags.
Why wrong: This is incorrect because locks prevent deletion or modification, but they do not evaluate deployment rules like required tags.
- D
A service endpoint, because it can filter which resources are allowed in a subscription.
Why wrong: This is incorrect because service endpoints are for network access to Azure services, not compliance enforcement.
Quick Answer
The answer is Azure Policy, because it can evaluate and enforce required resource properties during creation and modification. Azure Policy works by applying rules that check for specific conditions—in this case, the presence of a costCenter tag on a storage account—and can automatically deny any deployment that fails to meet those conditions, ensuring compliance without manual oversight. On the AZ-104 exam, this scenario tests your understanding of governance versus access control; a common trap is confusing Azure Policy with Azure RBAC, but remember that RBAC controls who can act, while Policy controls what resources are allowed. The exam often presents this as a “deny creation unless tag exists” scenario, so focus on Policy’s ability to enforce standards at the resource level. Memory tip: think of Policy as the bouncer that checks ID (tags) before letting a storage account into the club.
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 company wants to prevent users from creating storage accounts unless the resources include a costCenter tag. Which Azure feature should be used?
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
Azure Policy, because it can evaluate and enforce required resource properties.
Azure Policy is correct because it can enforce organizational standards by evaluating resource properties during creation and modification. By defining a policy that requires a 'costCenter' tag on all storage accounts, Azure Policy will deny creation of any storage account that does not include that tag, ensuring compliance without manual intervention.
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.
- ✗
Azure RBAC, because it controls whether users can create resources.
Why it's wrong here
This is incorrect because RBAC controls who can perform actions, not whether a resource configuration meets a compliance rule.
- ✓
Azure Policy, because it can evaluate and enforce required resource properties.
Why this is correct
This is correct because Azure Policy is designed to enforce standards and assess compliance. A policy can require a tag such as costCenter and deny or audit noncompliant resource creation. RBAC could still allow the user to create storage accounts, but Policy adds the configuration rule that controls whether the deployment is compliant.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A resource lock, because it can force resources to use tags.
Why it's wrong here
This is incorrect because locks prevent deletion or modification, but they do not evaluate deployment rules like required tags.
- ✗
A service endpoint, because it can filter which resources are allowed in a subscription.
Why it's wrong here
This is incorrect because service endpoints are for network access to Azure services, not compliance enforcement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Policy (which enforces resource properties) with Azure RBAC (which controls permissions), as both are governance tools but serve fundamentally different purposes.
Detailed technical explanation
How to think about this question
Azure Policy uses a policy definition written in JSON (e.g., with 'if' and 'then' clauses) that is evaluated by the Azure Resource Manager during PUT requests. Policies can be assigned at management group, subscription, or resource group scope and can include effects like 'Deny', 'Audit', or 'Append' to automatically add missing tags. In a real-world scenario, a company might combine a 'Deny' effect for missing tags with an 'Append' effect to automatically add a default tag value for auditing purposes.
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: Azure Policy, because it can evaluate and enforce required resource properties. — Azure Policy is correct because it can enforce organizational standards by evaluating resource properties during creation and modification. By defining a policy that requires a 'costCenter' tag on all storage accounts, Azure Policy will deny creation of any storage account that does not include that tag, ensuring compliance without manual intervention.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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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