Exam AZ-305 topic 1 question 64 discussion

We first create tags on the resources per project, afterwards we create a budget for monitoring the costs.

I had question at 24th Sep 2023

For monitoring costs on a per-project basis while minimizing administrative effort in Microsoft Cost Management, the two key components you should include are: Resource Tags – Apply consistent tags across resources that belong to the same project. Cost Management allows filtering and grouping costs by tags, making it easier to track expenditures for each project. Management Groups – Organize your multiple subscriptions into management groups. Although each subscription belongs to only one management group, this structure helps consolidate billing data, providing visibility across projects while reducing administrative complexity. Together, these components enable granular cost tracking per project across subscriptions while streamlining cost reporting and analysis.

Well, it is confusing because budgets are not wrong.. But budgets are for alerting not monitoring... Management groups would simplify applying the policies and reporting which resonates with lowering admin efforts... Monitoring the costs mean gaining insight on where the money goes not necessarily getting alerts..

Resposta dada pelo copilot (IA generativa da microsoft)

Microsoft says management group and resource tags! https://learn.microsoft.com/en-us/azure/cost-management-billing/cost-management-billing-overview#organize-and-allocate-costs

Budget doesn't make sense here.

A. budgets and B. resource tags Explanation: Budgets: Allow you to set spending limits for specific resources or subscriptions. Can be defined at a per-project level, making it easy to monitor costs for each project. Trigger alerts when budget thresholds are reached, helping to proactively manage costs. Resource tags:Provide a flexible way to categorize and label resources. Can be used to tag resources based on the project they belong to. Microsoft Cost Management allows you to filter and group costs by tags, making it easy to analyze costs on a per-project basis. Additional Considerations: While management groups could be used to organize subscriptions, they might not be the most efficient solution in this case. They are primarily used for policy and access control management. Custom RBAC roles and Azure Boards are not directly related to cost management and monitoring. By combining budgets and resource tags, you can effectively monitor and manage costs for each project with minimal administrative effort.

B. Resource tags Why: Tags allow categorizing and tracking costs for resources by project across multiple subscriptions. This enables detailed cost analysis and reporting for each project.Use tags to assign metadata to resources (e.g., project name), making it easier to filter and analyze costs per project. A. Budgets Why: Budgets enable setting cost limits and alerts for each project. When combined with tags, budgets can help track and control costs effectively, ensuring each project stays within its allocated budget.Set up budgets for each project to monitor spending, receive alerts, and enforce cost controls based on tagged resources.

Select Answer: AB To monitor costs on a per project basis using Microsoft Cost Management, you should include the following two components in the solution: Resource Tags (Option B): Resource tags allow you to categorize resources by project. This makes it easier to track costs associated with a particular project across multiple subscriptions. Budgets (Option A): Budgets in Azure Cost Management help you plan for and drive organizational accountability. With budgets, you can account for the resources used by your projects and monitor how spending progresses over time. Budgets will also alert you as you reach predefined budget thresholds. So, the correct answers are Resource Tags (Option B) and Budgets (Option A).

I would agree with AB MGMT groups dont allow for the requirements

The question is tricky. A,B and D would all be part of the solution. It's important to understand the purpose of the question and I've to say that Microsoft exam questions are often confusing. In this case the question already mentions Azure Cost Management, so Budgets are part of it. I would say that if you want to minimise administrative effort when applying tags, you have to group subscriptions based on projects, then you can use Azure Cost Management which doesn't have just Budgets but also other tools. Interstingly, ChatGpt and Gemini gave different answers, one AB, the other BD. But when I added to the question what the other AI gave as an answer, they both changed answers and they kept the last one even after removing it :)

How would you deploy the tags without a management group? You would have to create a policy for every sub. Minimize Effort. Management Groups are definitely correct.

To monitor costs on a per-project basis using Microsoft Cost Management while minimizing administrative effort, you should include the following two components: Azure Tags: Use Azure tags to label resources across subscriptions with project-specific tags. Assign tags to resources based on the project they belong to. Cost Management can then aggregate costs based on these tags, allowing you to monitor costs per project. Tags are easy to manage and do not require additional administrative overhead. Azure Management Groups: Create Azure management groups to organize your subscriptions hierarchically. Associate each project’s subscriptions under a specific management group. Set up cost tracking and reporting at the management group level. This approach minimizes administrative effort because you can manage policies, budgets, and cost views at the management group level rather than individually for each subscription.

budgets, resource tags

B and D are the correct answers. Refer to the below: https://learn.microsoft.com/en-us/azure/cost-management-billing/costs/understand-work-scopes https://learn.microsoft.com/en-us/azure/cost-management-billing/costs/quick-acm-cost-analysis

Budget and resource tags. Management group is wrong.