BenchMark Quizzes by MDFT Pro

Azure Resource Tags Application Scope

Claire, the cost management specialist at MDFT Pro training agency, is creating an Azure financial governance course for enterprise finance teams. The course teaches students how to implement effective cost tracking and resource organization strategies using Azure’s built-in tools. Mark, the lead technical instructor, has emphasized the importance of demonstrating proper tagging strategies across different organizational levels to help students understand how to implement comprehensive cost allocation and resource tracking. The training environment simulates a multi-department organization where proper resource categorization is essential for accurate billing and resource management.

The training setup includes a typical enterprise Azure resource hierarchy:

Level	Resource Name	Type
Management Group	MG1	Management Group
Subscription	Sub1	Subscription
Resource Group	RG1	Resource Group
Virtual Machine	VM1	Virtual Machine

At which levels can Azure tags be applied for resource tracking and cost allocation?

Choose the correct answer from the options below.

Explanations for each answer:

RG1 and VM1 only is incorrect. This is too restrictive. Tags can also be applied at the subscription level (Sub1) for broader organizational and billing purposes.
Sub1 and RG1 only is incorrect. This excludes individual resources like VM1. Azure tags can be applied to individual resources for detailed tracking and organization.
Sub1, RG1, and VM1 only is correct. Correct. Azure tags can be applied at the subscription level (Sub1), resource group level (RG1), and individual resource level (VM1). Tags cannot be applied to management groups or tenant root groups.
MG1, Sub1, RG1, and VM1 only is incorrect. Management groups (MG1) do not support tags. Tags are only available at subscription, resource group, and individual resource levels.
Tenant Root Group, MG1, Sub1, RG1, and VM1 is incorrect. Neither Tenant Root Group nor Management Groups support tags. Tags are only supported at subscription, resource group, and resource levels.

Learn more about using tags to organize Azure resources:

Resource Tags Overview

Exam Preparation Quiz

Azure Resource Tags Application Scope