Resource tagging is an essential tool for enterprises that require insight into where the money is going- like what group/department/division of your organization does this spending fall under.
Tags work as a key-value pair, so by using reportable dimensions for the tag keys (like Environment or Product) and logically grouping the parts of your business or platform with tag values, resource tagging enables reporting, visibility on the owners responsible for the cloud spend and forms the basis of chargeback allocation. Apart from cost monitoring, cost optimization and cost control of cloud resources with automated processes and policies is made possible with the judicious use of resource tags.