Your account is a member of an organization using consolidated billing. You have tagged resources by environment (for example: dev, test, prod) and need a report showing costs broken down by environment. What is the correct step to enable cost reporting by those tags for the organization?

To report costs by custom tags like 'environment', you must first activate those tag keys as cost allocation tags. This is done in the billing console of the organization's management account. Once activated, AWS begins processing these tags for cost and usage reports. Without activation, even if resources are tagged, the billing reports will not show cost breakdowns by those specific tags. The other options are incorrect: Tag Editor is for managing tags on resources, not for enabling cost reporting. SCPs control permissions, but don't activate tags for cost allocation. IAM permissions are necessary to view reports, but don't enable the tag-based reporting itself.