Final answer:
An Allowed Resource Type policy definition identifies the resource types that can be created or managed within a CSP environment, helping control usage for cost, security, and compliance purposes.
Step-by-step explanation:
The Allowed Resource Type policy definition specifies the types of resources that an organization permits users to create or manage within a Cloud Service Provider (CSP) environment. This policy typically identifies the approved resource types by listing acceptable resource identifiers, such as virtual machines, storage accounts, or network interfaces. By implementing this policy, organizations can maintain better control over their cloud environments, ensuring that only authorized resource types are used, which helps in cost management, security, and compliance with various standards.