The structure that organizes Google Cloud resources: the organization node at the root, folders for grouping, projects, and each service’s resources inside them. IAM and organization policies are inherited from top to bottom.
On the ACE it comes up when building a company’s structure: folders per department or environment, policies set at the organization or a folder and inherited by projects. The effective IAM policy is the union of the resource’s policy and its ancestors’.
Google Cloud resource hierarchy is a concept that can show up on the exam. Check the full guide to see it in context.