What is the purpose of AWS Budgets?

AWS Budgets is designed specifically to help users monitor their spending on AWS services and to alert them when their spending exceeds predefined budget thresholds. This functionality offers valuable insights into cost management by allowing organizations to set custom budgets based on their specific financial goals and procedures.

Setting up AWS Budgets enables users to track their costs over time, identify trends, and gain visibility into their expenses. When the actual or forecasted costs exceed the established budget, users receive notifications via email or Amazon SNS, which helps promote proactive financial management. This way, organizations can make informed decisions about their AWS usage and manage their expenses effectively.

The purpose of AWS Budgets stands distinctly apart from other AWS features. For example, automating workflow processes relates to services like AWS Step Functions or AWS Lambda, creating IAM policies pertains to AWS Identity and Access Management for security, and managing resource allocation involves different services like AWS Resource Manager or AWS Auto Scaling. Therefore, the specific focus of AWS Budgets on cost control and financial accountability sets it apart and confirms why it's the correct answer.