AZ-305 Question 44
Single answerA multinational organization needs to design a hierarchy in Azure that accommodates multiple business units and ensures consistent governance, compliance, and cost tracking. They plan to use standardized tagging (e.g., CostCenter, Environment, and Owner) and want to apply policies consistently. Which recommended approach best meets these requirements?
- A
Create a single root management group, define child management groups for each business unit, then assign subscriptions under each child group. Use Azure Policy to apply consistent tag values across all resource groups.
- B
Use a single subscription for all resources and rely on manual tagging by resource owners for cost tracking. Group resources in a single resource group to simplify management.
- C
Create separate top-level management groups for each environment (Production, Dev, Test), placing all subscriptions under these environment groups. Ensure tags are set manually by each application team.
- D
Retain only the built-in Tenant Root Group without child management groups, then rely on custom naming conventions within a single subscription. Apply tags retroactively as needed.
Show answer and explanation
Correct answer: A
Explanation
Establishing a clear hierarchy of management groups aligned with the organization's structure (such as business units or departments) allows for scalable policy enforcement, consistent governance, and better cost management. Using Azure Policy to enforce a standardized tagging strategy ensures that all resources carry the required tags (like CostCenter, Environment, Owner) automatically, in accordance with recommended best practices. Further details are available in Microsoft documentation on Azure Management Groups and Azure Policy.
- A. Correct.
Option 1 is correct. Best practices recommend creating a root management group and child management groups for each business unit or department to enforce governance and policy at scale. Subscriptions can then be organized under these child groups. Azure Policy is used to enforce tagging standards, ensuring consistent application of required tags across all resources.
- B. Incorrect.
Option 2 is incorrect because using a single subscription for all resources limits scalability and governance. Manually enforcing tags across a large environment is error-prone and lacks centralized governance capabilities that management groups and Azure Policy provide.
- C. Incorrect.
Option 3 is incorrect because creating separate top-level management groups purely by environment without considering business units can complicate cross-departmental compliance and policy enforcement. Manually setting tags is also more likely to introduce inconsistencies compared to enforcing them with Azure Policy.
- D. Incorrect.
Option 4 is incorrect because relying solely on the Tenant Root Group and a single subscription does not provide the hierarchical controls needed for multiple business units. Retroactive tagging can be inconsistent and less effective than a policy-driven approach.