1Z0-997-25 exam dumps

1Z0-997-25 practice question 170 of 175

Oracle Cloud Infrastructure 2025 Architect Professional. Professional level, Oracle. Free question with the correct answer and a full explanation.

1Z0-997-25 Question 170

Single answer

Your organization has a 'Dev' compartment in OCI where multiple teams deploy services. Management wants to ensure every new resource is assigned cost-tracking tags and that monthly spending caps are enforced to stay within budget. Which single approach best satisfies both tagging compliance and budget oversight requirements?

  1. A

    A) Use Tag Defaults to automatically apply required tags on resources in the 'Dev' compartment, and create a budget relevant to the 'Dev' compartment with an alert rule when the spend reaches a threshold.

  2. B

    B) Rely on manual tagging by each team member and only track overall OCI spending at the root compartment level with a single budget.

  3. C

    C) Set up a Resource Quota to specify the maximum number of compute instances and expect team members to apply cost-tracking tags as needed.

  4. D

    D) Create IAM policies that deny all resource creation in the 'Dev' compartment unless they are ephemeral instances without the need to configure budgets.

Show answer and explanation

Correct answer: A

Explanation

To effectively govern costs, you should combine automated tagging strategies (such as Tag Defaults) with compartment-level budgets and alerts. Tag Defaults ensure each resource is tracked, preventing untagged resources from affecting cost visibility. Placing a budget on the relevant compartment provides clear spending oversight, sending automated alerts when usage approaches or exceeds defined thresholds. As described in Oracle documentation, Tag Defaults and OCI Budgets are key native tools for cost governance and optimization.

  • A. Correct.

    A) CORRECT. Tag Defaults automatically enforce the required tags on all new resources in the 'Dev' compartment. Creating a budget at the 'Dev' compartment level allows you to monitor and control monthly costs with alert rules if you approach or exceed your budget threshold.

  • B. Incorrect.

    B) INCORRECT. Relying on manual tagging increases the risk of missing tags and inaccurate cost tracking. Also, having a single root budget does not provide compartment-level control or visibility for different teams.

  • C. Incorrect.

    C) INCORRECT. Resource Quotas control the count or shape of resources, not their cost. Quotas do not enforce tagging policies, nor do they manage monthly spending caps.

  • D. Incorrect.

    D) INCORRECT. Denying resource creation unless they are certain instance types does not address budget alerts or tagging compliance for newly created resources.

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