A company wants to implement detailed tracking of its cloud costs by department and project.

Cost allocation tags are an AWS feature that allows for detailed tracking of cloud costs by tagging resources. These tags can be customized to represent departments, projects, or cost centers, enabling organizations to allocate and monitor expenses accurately. By using cost allocation tags, companies can create reports that break down costs by tag, providing granular insights into their cloud spending. This feature is critical for achieving detailed cost management and is a core part of AWS’s billing and cost management offerings.