How do resource tags help with cost allocation in AWS?

They encrypt resources to prevent unauthorized access

They automatically reduce the cost of tagged resources

They allow you to group and track costs by department, project, or environment

They enable automatic scaling of resources

A company wants to track cloud spending for each of its product teams. Which practice is most effective for this purpose?

Enabling AWS CloudTrail to log API calls

Applying tags to resources with a key like 'Team' and a value like 'ProductA'

Creating a separate AWS account for each team without any tags

Using AWS Cost Explorer without any tags

A company has multiple teams sharing an AWS account. The finance team wants to identify which team is overspending on EC2 instances. They have already applied cost allocation tags to all EC2 instances. What is the next step to get a detailed breakdown?

Create a separate AWS account for each team.

Use AWS Budgets to set a budget for each team.

Use AWS Trusted Advisor to identify idle instances.

Use AWS Cost Explorer to group by the team tag.

A small company is comparing the cost of running its web application on AWS versus building a new on-premises data center. The company expects steady growth but wants to avoid over-provisioning. Which AWS advantage is most directly related to this benefit?

AWS offers economies of scale that lower the per-unit cost of compute and storage.

AWS has global infrastructure that provides low latency.

AWS provides a free tier for new customers.

AWS has a higher level of security than on-premises data centers.

AWSCertified Cloud Practitioner

Domain 1Objective 4

Task Statement 1.4: Understand Concepts of Cloud Economics. CLF-C02 Practice Questions (Page 4)

Part of the Cloud Concepts domain, which makes up ~23% of our current practice bank. AWS does not publish an official question count, but from its 90-minute exam (~35–60 total, ~8–14 in this domain), expect 2–4 from this objective — we provide 34 practice questions to prepare you well beyond it. (estimate)

34questions here

7free pages

10concepts

Questions 16–20

16foundation · easy
How do resource tags help with cost allocation in AWS?
Select an answer first
17foundation · easy
A company wants to track cloud spending for each of its product teams. Which practice is most effective for this purpose?
Select an answer first
18foundation · easy
Which AWS pricing model is best suited for a batch processing job that can be interrupted and resumed at any time?
Select an answer first
19expert · hard
A company has multiple teams sharing an AWS account. The finance team wants to identify which team is overspending on EC2 instances. They have already applied cost allocation tags to all EC2 instances. What is the next step to get a detailed breakdown?
Select an answer first
20application · medium
A small company is comparing the cost of running its web application on AWS versus building a new on-premises data center. The company expects steady growth but wants to avoid over-provisioning. Which AWS advantage is most directly related to this benefit?
Select an answer first

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