DEA-C02 Data Governance Practice Question
What is the primary benefit of using Snowflake's Object Tagging for cost attribution?
⚠ Common exam trap
Candidates often assume object tags directly compute warehouse compute costs, missing that tags only label objects for cost attribution while actual warehouse costs are tracked via WAREHOUSE_METERING_HISTORY.
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
✓
It allows costs to be associated with specific business projects.
Object Tagging allows organizations to assign costs to specific business units, projects, or applications by labeling the tables and schemas they use. This is critical for internal showback/chargeback models. By tracking resource usage at the tagged object level, finance teams can accurately map Snowflake costs to specific departments, encouraging better resource management and accountability across the organization's data footprint.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
It automatically reduces the storage costs by compressing data.
Why it's wrong here
Tags are metadata and have no impact on storage efficiency or data compression. They are purely for categorization and labeling. If cost reduction is the goal, other features like auto-clustering or lifecycle management should be considered, as tags provide no storage-level benefit or performance optimization for the underlying data.
- ✓
It allows costs to be associated with specific business projects.
Why this is correct
By applying tags to databases or schemas, organizations can monitor usage and associate costs with specific projects or departments. This visibility is essential for cost management, as it allows leadership to identify high-cost areas and optimize resource consumption based on actual business value and departmental activity.
- ✗
It enables query results to be cached more efficiently.
Why it's wrong here
Tags are not involved in query execution or the caching layer. They do not inform the query optimizer or the result cache. Therefore, they cannot improve the performance or cache hit rate of queries, making this claim factually incorrect in the context of Snowflake performance and architecture.
- ✗
It replaces the need for Resource Monitors.
Why it's wrong here
Resource Monitors are used to set usage limits and alert on consumption, whereas Tags are used for labeling and reporting. They serve different purposes and complement each other. Tags provide the 'who' and 'what,' while Resource Monitors provide the 'how much' and 'stop' functionality for usage.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official Snowflake exam blueprint
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