Exam objective

AZ-104

Manage Azure subscriptions and governance

This objective sits in Manage Azure identities and governance, which carries 24% of the Azure Administrator exam. The questions below are original, written from the official objective title above, and each explanation cites the Microsoft Azure page it rests on.

Objective title verbatim from the official objectives. Microsoft Azure exam page ↗

A worked example

Shown solved, with the whole explanation open: this is what every question here carries.

Manage Azure identities and governance

A finance team tags every resource group with CostCenter, yet the cost report shows most virtual machines with no CostCenter value. What should an administrator configure so resources carry it?

Assign an Azure Policy that inherits the tag from the resource groupCorrect · your answerCorrect.
Apply the tag to the subscription so it flows to every resourceSubscription tags are not inherited either; they stay on the subscription object.
Add the tag to the management group above the subscriptionManagement groups cannot carry tags at all.
Enable tag inheritance on each resource group's Properties bladeNo such inheritance switch exists on a resource group.

Correct.

Checked against learn.microsoft.com, September 2026

Concept

Metadata on a container in Azure stays on the container. Anything that must appear on the children has to be written there, and the mechanism that writes it consistently at scale is a governance rule that runs on creation and can be remediated over what already exists.

Why A

Resources do not inherit tags applied to a resource group or subscription; Microsoft's documented route is to assign the built-in policy definitions for tag compliance, which add or inherit the tag from the parent resource group.

Source

Inherit tags Resources don't inherit the tags you apply to a resource group or a subscription. To apply tags from a subscription or resource group to the resources, see Assign policy definitions for tag compliance.

Use tags to organize your Azure resources, checked September 2026
#tags#inheritance#azure-policy

Now you: practice questions

No account needed. The explanation opens when you answer.

Sample question 1 of 3

Manage Azure identities and governance

A compliance analyst must add and correct tags on resources across a subscription through PowerShell but must not change the resources themselves. Which built-in role fits?

Sample question 2 of 3

Manage Azure identities and governance

You assign a built-in modify-effect policy that adds a required tag. New deployments get the tag, but hundreds of existing storage accounts remain non-compliant. What should you create?

Sample question 3 of 3

Manage Azure identities and governance

A remediation task for a deployIfNotExists assignment created with an Azure SDK fails with authorization errors on every resource. The same definition assigned through the portal remediates fine. Why?

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Read the sources

These are the official pages the questions above cite. Reading them is studying the objective from the primary source, which is what the explanations point you toward anyway.

More objectives in Manage Azure identities and governance