Cost allocation tags are a mechanism provided by AWS to assign metadata to AWS resources for cost tracking and categorization purposes. By applying cost allocation tags to resources, companies can associate custom metadata to identify and categorize resources based on different criteria, such as business unit, department, project, or application.
When using cost allocation tags, companies can track and analyze their AWS costs based on the assigned tags. This allows them to determine the cost distribution among different business units or any other relevant categorization. Cost allocation tags provide granular visibility into resource usage and expenditure, enabling accurate cost attribution and analysis.
You can use tags to organize your resources, and cost allocation tags to track your AWS costs on a detailed level. After you activate cost allocation tags, AWS uses the cost allocation tags to organize your resource costs on your cost allocation report, to make it easier for you to categorize and track your AWS costs.
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