Microsoft Azure Administrator (AZ104) Practice Exam

How can you associate Azure virtual machines with specific cost centers?

1. Add an extension to each virtual machine

2. Modify the virtual machine settings

3. Assign tags to the virtual machines

4. Configure access policies

The correct answer is: Assign tags to the virtual machines

Associating Azure virtual machines with specific cost centers can effectively be achieved by assigning tags to the virtual machines. Tags are key-value pairs that you can apply to Azure resources, including virtual machines. By using tags, you can organize resources, categorize them by department, project, or cost center, and help in tracking expenses associated with those resources. When you assign a tag that indicates a cost center to a virtual machine, this information can later be used to filter and group resources in the Azure portal or Azure Cost Management. This capability allows you to generate reports and analyze spending by department or project, making it easier to allocate costs accurately and identify areas for optimization. The other options do not provide the same functionality for associating virtual machines with cost centers. Adding an extension to each virtual machine typically involves enhancing functionality or management tasks rather than organizing billing data. Modifying the virtual machine settings may allow for configuration changes but does not directly relate to financial attribution. Configuring access policies focuses on resource security and permissions, which is essential for managing access to resources but does not contribute to cost center identification.