AWS Cost Explorer basics - Mini Project: Build & Apply

AWS Cost Explorer basics

📖 Scenario: You are a cloud administrator for a small company. You want to understand how much your AWS services cost each month so you can manage your budget better.

🎯 Goal: Learn to set up and use AWS Cost Explorer to view monthly AWS costs by service.

📋 What You'll Learn

Create a Cost Explorer query to get monthly cost data

Set a time period for the cost query

Group costs by AWS service

Configure the query to show results in USD

💡 Why This Matters

🌍 Real World

AWS Cost Explorer helps companies track and manage their cloud spending by showing detailed cost reports.

💼 Career

Cloud administrators and finance teams use Cost Explorer queries to optimize budgets and forecast expenses.

1

Create the initial Cost Explorer query parameters

Create a dictionary called cost_query with a key TimePeriod set to a dictionary with Start as "2024-01-01" and End as "2024-01-31".

AWS

# Create the cost_query dictionary with TimePeriod keys
# Your code here

Hint

Use nested dictionaries to set the time period with exact start and end dates.

2

Add grouping by AWS service

Add a key GroupBy to the cost_query dictionary. Set it to a list with one dictionary that has Type set to "DIMENSION" and Key set to "SERVICE".

AWS

cost_query = {
    "TimePeriod": {
        "Start": "2024-01-01",
        "End": "2024-01-31"
    }
}
# Add GroupBy key to cost_query
# Your code here

Hint

GroupBy expects a list of dictionaries with Type and Key keys.

3

Add the metric to show unblended cost

Add a key Metrics to the cost_query dictionary. Set it to a list containing the string "UnblendedCost".

AWS

cost_query = {
    "TimePeriod": {
        "Start": "2024-01-01",
        "End": "2024-01-31"
    },
    "GroupBy": [
        {
            "Type": "DIMENSION",
            "Key": "SERVICE"
        }
    ]
}
# Add Metrics key with UnblendedCost
# Your code here

Hint

Metrics is a list of strings specifying which cost metric to show.

4

Add the granularity setting

Add a key Granularity to the cost_query dictionary and set it to the string "MONTHLY".

AWS

cost_query = {
    "TimePeriod": {
        "Start": "2024-01-01",
        "End": "2024-01-31"
    },
    "GroupBy": [
        {
            "Type": "DIMENSION",
            "Key": "SERVICE"
        }
    ],
    "Metrics": ["UnblendedCost"]
}
# Add Granularity key with value 'MONTHLY'
# Your code here

Hint

Granularity controls the time grouping of the cost data.

Practice

1. What is the main purpose of AWS Cost Explorer?

easy

A. To monitor network traffic

B. To create AWS virtual machines

C. To help you track and understand your AWS spending

D. To manage user permissions

Solution

1. Step 1: Understand AWS Cost Explorer's function

   AWS Cost Explorer is designed to show your cloud spending clearly and help manage costs.

2. Step 2: Compare options with this function

   Options A, B, and D describe other AWS services or features unrelated to cost tracking.

3. Final Answer:

   To help you track and understand your AWS spending -> Option C

4. Quick Check:

   Cost tracking = C [OK]

Hint: Cost Explorer is for spending, not resources or permissions [OK]

Common Mistakes:

• Confusing Cost Explorer with EC2 or IAM services
• Thinking it manages network or security settings

2. Which of the following is the correct way to start AWS Cost Explorer from the AWS Console?

easy

A. Go to Services > S3 > Cost Explorer

B. Go to Services > EC2 > Cost Explorer

C. Go to Services > IAM > Cost Explorer

D. Go to Services > Billing > Cost Explorer

Solution

1. Step 1: Identify where billing tools are located

   Cost Explorer is found under Billing in the AWS Console, not under EC2, IAM, or S3.

2. Step 2: Match the correct navigation path

   Only Go to Services > Billing > Cost Explorer correctly shows Services > Billing > Cost Explorer.

3. Final Answer:

   Go to Services > Billing > Cost Explorer -> Option D

4. Quick Check:

   Billing section = A [OK]

Hint: Cost Explorer is under Billing, not compute or storage [OK]

Common Mistakes:

• Looking for Cost Explorer under EC2 or S3
• Confusing IAM with billing tools

3. You use AWS Cost Explorer to view your monthly AWS costs grouped by service. If your report shows $100 for EC2 and $50 for S3, what does this mean?

medium

A. Your EC2 and S3 usage is free this month

B. You spent $100 on EC2 and $50 on S3 this month

C. You reserved EC2 instances worth $100 and S3 storage worth $50

D. You have $100 credit for EC2 and $50 credit for S3

Solution

1. Step 1: Understand grouping by service in Cost Explorer

   Grouping by service shows how much money you spent on each AWS service in the selected time.

2. Step 2: Interpret the amounts shown

   $100 for EC2 and $50 for S3 means those are your costs, not credits or reserved amounts.

3. Final Answer:

   You spent $100 on EC2 and $50 on S3 this month -> Option B

4. Quick Check:

   Costs shown = spending, not credits or free usage [OK]

Hint: Costs mean spending, not credits or reservations [OK]

Common Mistakes:

• Thinking amounts are credits or free usage
• Confusing cost with reserved capacity

4. You tried to filter your AWS Cost Explorer report by a tag, but no data appears. What is the most likely reason?

medium

A. The tag is not activated for cost allocation in AWS Billing settings

B. You have no AWS account

C. Cost Explorer does not support filtering by tags

D. You need to restart your AWS instance

Solution

1. Step 1: Understand tag filtering in Cost Explorer

   To filter by tags, the tags must be activated for cost allocation in Billing preferences.

2. Step 2: Identify why no data appears

   If the tag is not activated, Cost Explorer cannot use it to filter, so no data shows.

3. Final Answer:

   The tag is not activated for cost allocation in AWS Billing settings -> Option A

4. Quick Check:

   Tag activation needed for filtering = A [OK]

Hint: Activate tags in billing before filtering by them [OK]

Common Mistakes:

• Assuming Cost Explorer can't filter by tags
• Thinking AWS instance restart fixes this
• Believing no AWS account is the cause

5. You want to analyze your AWS costs for the last 3 months, grouped by linked accounts and filtered to only show costs for EC2 and S3. Which steps should you take in AWS Cost Explorer?

hard

A. Set the time range to last 3 months, group by linked accounts, and filter services to EC2 and S3

B. Set the time range to last 3 months, group by service, and filter accounts to EC2 and S3

C. Set the time range to last month, group by linked accounts, and filter services to all except EC2 and S3

D. Set the time range to last 3 months, group by tags, and filter services to EC2 only

Solution

1. Step 1: Choose correct time range and grouping

   Set the time range to last 3 months and group by linked accounts to see costs per account.

2. Step 2: Apply service filters correctly

   Filter services to only EC2 and S3 to focus on those costs.

3. Step 3: Verify options

   Set the time range to last 3 months, group by linked accounts, and filter services to EC2 and S3 matches all requirements. Other options have wrong grouping, filtering, or time range.

4. Final Answer:

   Set the time range to last 3 months, group by linked accounts, and filter services to EC2 and S3 -> Option A

5. Quick Check:

   Time + grouping + filter = B [OK]

Hint: Match time, grouping, and filters exactly for correct report [OK]

Common Mistakes:

• Mixing grouping by service vs linked accounts
• Filtering accounts instead of services
• Choosing wrong time range