Final answer:
Tags can indeed be applied to any type of resource on Azure, which helps in resource categorization and management; however, there are certain limitations and best practices to be aware of.
Step-by-step explanation:
The statement that tags can be applied to any type of resource on Azure is true. Tags in Azure are name/value pairs that you can assign to resources and resource groups. They allow you to categorize resources according to different criteria such as department, project, or environment, which can be helpful for cost tracking, management, and automation processes within Azure.
However, there are some limitations to using tags in Azure. For example, there are limits on the number of tags that can be applied to a single resource or resource group, and not all resource types may support tagging in the same way. It's important for users to check the Azure documentation for the latest information on tagging capabilities and limitations for specific Azure services.