Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam 2026 - Free AZ-900 Practice Questions and Study Guide

The statement is true because tags applied at the resource group level do not automatically propagate to the individual resources within that resource group. Tags in Azure can be used for organizing and managing resources, including applying costs management, governance, automation, and more. However, when tags are assigned to a resource group, Azure treats those tags as separate from the individual resources. Therefore, resources within that group retain their tagging structure, and you would need to apply tags to each individual resource manually.

This behavior highlights the importance of careful planning and management of tagging strategies in Azure, especially for larger environments where resource organization is crucial for effective administration and reporting.