The answer is to enable Application Insights with dependency tracking. This is correct because distributed tracing relies on correlating telemetry across all components of a request path, and dependency tracking automatically captures outbound calls to databases, external services, and HTTP endpoints, stitching them into a single end-to-end transaction view. On the AZ-204 exam, this scenario tests your understanding of how Application Insights maps to the distributed tracing pillar of observability, often appearing in questions about performance bottlenecks or memory leaks. A common trap is to assume that simply enabling Application Insights without configuring dependency tracking is sufficient, but the SDK must explicitly collect dependency data to trace root causes across services. Memory tip: think of dependency tracking as the “glue” that connects the dots between your app and its downstream calls—without it, you only see half the story.
AZ-204 Practice Question: Monitor, troubleshoot, and optimize Azure solutions
This AZ-204 practice question tests your understanding of monitor, troubleshoot, and optimize azure solutions. 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.
An Azure App Service application has memory pressure. The developer needs distributed tracing across requests and dependencies. What should be enabled?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Application Insights with dependency tracking
Application Insights with dependency tracking enables distributed tracing by automatically collecting telemetry across HTTP requests, database calls, and external service dependencies. This allows developers to correlate end-to-end transactions and identify the root cause of memory pressure, such as a specific dependency causing excessive resource consumption.
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.
✓
Application Insights with dependency tracking
Why this is correct
Application Insights provides request, dependency, exception, and trace telemetry for application diagnostics.
Related concept
Read the scenario before looking for a memorised answer.
✗
Azure Policy compliance scan
Why it's wrong here
Policy evaluates resource compliance, not distributed application traces.
✗
Cost Management budgets only
Why it's wrong here
Budgets track spend but do not diagnose request paths.
✗
Storage account static website logs
Why it's wrong here
Static website logs do not trace App Service dependencies.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse Azure Policy (governance) or Cost Management (budgeting) with monitoring tools, or think static website logs can trace application dependencies, when only Application Insights provides the necessary distributed tracing and dependency correlation.
Detailed technical explanation
How to think about this question
Application Insights uses the OpenTelemetry protocol (or its own SDK) to instrument code and propagate correlation IDs via W3C Trace-Context headers. Under the hood, dependency tracking creates telemetry items linked by operation IDs, enabling a full end-to-end view in the Application Map. In a real-world scenario, memory pressure might be caused by a slow downstream SQL query; distributed tracing reveals the exact dependency call duration and failure rate, guiding optimization.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-204 question in full detail.
Monitor, troubleshoot, and optimize Azure solutions — This question tests Monitor, troubleshoot, and optimize Azure solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Application Insights with dependency tracking — Application Insights with dependency tracking enables distributed tracing by automatically collecting telemetry across HTTP requests, database calls, and external service dependencies. This allows developers to correlate end-to-end transactions and identify the root cause of memory pressure, such as a specific dependency causing excessive resource consumption.
What should I do if I get this AZ-204 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 →
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An Azure App Service application has slow API requests. The developer needs distributed tracing across requests and dependencies. What should be enabled?
medium
A.Azure Policy compliance scan
✓ B.Application Insights with dependency tracking
C.Storage account static website logs
D.Cost Management budgets only
Why B: Application Insights with dependency tracking is the correct choice because it provides distributed tracing across requests and dependencies, enabling developers to correlate end-to-end transactions in a microservices or multi-component application. It automatically collects telemetry for HTTP calls, database queries, and other external service calls, which is essential for diagnosing slow API requests in an Azure App Service environment.
Last reviewed: Jun 11, 2026
Question Discussion
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This AZ-204 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-204 exam.
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