AWS Certified Cloud Practitioner / Question #966 of 719

Question #966

A company operates multiple departments, each requiring detailed cost reporting and budget management. They aim to isolate expenses by department with minimal administrative effort. Which approach achieves this most effectively?

A

Use AWS Organizations to create separate accounts for each department.

B

Implement resource tagging and generate reports using AWS Cost Explorer.

C

Store cost data in Amazon S3 buckets partitioned by department.

D

Use AWS Budgets with manual entry of department-specific allocations.

Explanation

The correct answer is A. AWS Organizations allows the creation of separate AWS accounts for each department, which inherently isolates costs at the account level. This approach eliminates the need for manual tagging or data partitioning, reducing administrative overhead.

- Why A is correct: Each account's costs are tracked separately, simplifying budgeting and reporting. AWS Organizations centralizes management while maintaining cost isolation.
- Why others are incorrect:
- B (Resource tagging) requires consistent tagging across all resources, which is error-prone and labor-intensive.
- C (S3 partitioned data) does not isolate costs in real-time and requires post-processing.
- D (Manual AWS Budgets) involves error-prone manual effort and lacks automation.

Key Points: AWS Organizations provides account-level cost isolation, ensuring minimal administrative effort while meeting departmental reporting requirements.

Answer

The correct answer is: A