Identify cost attribution categories

Identifying cost attribution categories is critical for effective financial management in the cloud. By allocating costs to specific organizational units such as business units, departments, or projects, businesses can track spending closely, enforce accountability, and promote a culture of cost-awareness across the organization. This approach ultimately enhances overall cost efficiency.

Best Practices

• Define Clear Attribution Categories: Clearly define different departmental or project categories within your organization. Ensure that stakeholders understand these categories to improve accountability. This process enhances transparency and helps team members make informed decisions about their resource usage.

Supporting Questions

• Are the cost attribution categories regularly reviewed and updated?

Roles and Responsibilities

• Finance Team: The finance team is responsible for establishing cost categories and monitoring allocations. They ensure that the policies related to financial management are enforced, and they collaborate with departments to promote awareness.

Artifacts

• Cost Allocation Report: This document outlines the assigned costs to various organizational categories and tracks spending patterns over time. It serves as a transparency measure and helps in evaluating the effectiveness of cost management strategies.

Cloud Services

AWS

• AWS Cost Explorer: AWS Cost Explorer allows users to visualize, understand, and manage costs over time. Its capabilities enable businesses to track spending across different categories and make informed decisions based on real-time data.
• AWS Budgets: AWS Budgets helps set custom cost and usage budgets that alert stakeholders when spending exceeds defined thresholds, aiding in proactive cost management and awareness.

Question: How do you monitor your cost and usage?
Pillar: Cost Optimization (Code: COST)