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CLF-C02 · Domain 4: Billing, Pricing, and Support · 12% of the exam

Task 4.2: Understand resources for billing, budget, and cost management.

Budgets and alerts, Cost Explorer, the Pricing Calculator, consolidated billing in AWS Organizations, and cost allocation tags.

Study it

  • Budgets, Cost Explorer, Pricing Calculator, consolidated billing and cost allocation tags

    Lesson coming

Sample questions

Try each one before opening the answer. Every option is explained, with the AWS documentation page that proves it.

Question 1 · choose 1

A startup wants an email as soon as its AWS spend for the month is forecasted to go over $500, before the money has actually been spent. Which service should it use?

  1. AAWS Budgets
  2. BAWS Cost Explorer
  3. CAWS Pricing Calculator
  4. DAWS Trusted Advisor
Show the answer and why
  • AAWS Budgets

    Correct

    A cost budget can alert on forecasted spend as well as actual spend, by email or through an Amazon SNS topic.

  • BAWS Cost Explorer

    Incorrect

    Cost Explorer is for viewing and analyzing costs and usage, including a forecast. Sending an alert at a threshold is what a budget does.

  • CAWS Pricing Calculator

    Incorrect

    The Pricing Calculator estimates the cost of a planned workload. It does not watch what an account is actually spending.

  • DAWS Trusted Advisor

    Incorrect

    Trusted Advisor recommends ways to save money and close gaps; it does not alert on a spending threshold you set.

Budgets watch spend against a number you choose and tell you before or after you cross it. Cost Explorer explains where the money went.

Question 2 · choose 1

A company has six AWS accounts, one per department. Finance wants a single bill for all of them while still seeing each department's charges. Which feature provides this?

  1. AAWS Pricing Calculator
  2. BAWS Budgets
  3. CConsolidated billing
  4. DAWS Artifact
Show the answer and why
  • AAWS Pricing Calculator

    Incorrect

    The Pricing Calculator creates cost estimates for planning. It has nothing to do with how accounts are billed.

  • BAWS Budgets

    Incorrect

    Budgets track costs and usage against a target and send alerts. They do not merge the bills of several accounts.

  • CConsolidated billing

    Correct

    Consolidated billing gives one bill for multiple accounts, lets you track each account's charges, combines usage for volume discounts, and costs nothing extra.

  • DAWS Artifact

    Incorrect

    Artifact provides AWS compliance documents and agreements, not billing.

One payer, many accounts: the management account of an organization pays the charges of every member account, and each account's costs stay visible.

Question 3 · choose 1

A finance analyst wants to see how the company's AWS spending has changed over recent months, broken down by service in graphs, and to see a forecast of upcoming costs. Which tool is built for this?

  1. AAWS Pricing Calculator
  2. BAWS Budgets
  3. CAWS Trusted Advisor
  4. DAWS Cost Explorer
Show the answer and why
  • AAWS Pricing Calculator

    Incorrect

    The Pricing Calculator estimates the cost of planned workloads. It does not show what an account has actually spent.

  • BAWS Budgets

    Incorrect

    Budgets track spending against a target you set and send alerts. The exploring and charting of past costs is Cost Explorer's job.

  • CAWS Trusted Advisor

    Incorrect

    Trusted Advisor recommends ways to save money, but it is not a tool for analyzing spending history.

  • DAWS Cost Explorer

    Correct

    Cost Explorer lets you view and analyze your costs and usage over time, filter and group them, for example by service, and forecast future costs.

Looking back and forecasting: Cost Explorer. Setting a limit and being alerted: Budgets. Estimating before you build: Pricing Calculator.

Question 4 · choose 1

Before building anything, a startup wants to know roughly how much a planned architecture — two EC2 instances, an RDS database and an S3 bucket — would cost each month on AWS. Which tool should it use?

  1. AAWS Pricing Calculator
  2. BAWS Cost Explorer
  3. CAWS Budgets
  4. DConsolidated billing in AWS Organizations
Show the answer and why
  • AAWS Pricing Calculator

    Correct

    The Pricing Calculator is a planning tool for creating cost estimates of AWS use cases before you build them.

  • BAWS Cost Explorer

    Incorrect

    Cost Explorer analyzes the costs an account has already incurred, and forecasts from them. There is nothing to analyze yet.

  • CAWS Budgets

    Incorrect

    Budgets watch actual and forecasted spend against a target. They do not price an architecture that does not exist yet.

  • DConsolidated billing in AWS Organizations

    Incorrect

    Consolidated billing combines the bills of several accounts. It does not estimate future costs.

Estimates come before the account spends anything; Cost Explorer and Budgets work on what it has spent and is spending.

Question 5 · choose 1

A company tags every resource with a "project" key. Finance now wants Cost Explorer and the cost allocation report to break AWS costs down by project. What must the company do?

  1. ACreate a separate VPC for each project's resources
  2. BTurn on AWS CloudTrail
  3. CDownload reports from AWS Artifact
  4. DActivate "project" as a cost allocation tag
Show the answer and why
  • ACreate a separate VPC for each project's resources

    Incorrect

    A VPC is a virtual network. Splitting networks does not make costs appear by project in billing reports.

  • BTurn on AWS CloudTrail

    Incorrect

    CloudTrail records API activity for auditing. It does not organize costs.

  • CDownload reports from AWS Artifact

    Incorrect

    Artifact provides AWS's compliance reports, not the company's cost data.

  • DActivate "project" as a cost allocation tag

    Correct

    User-defined tags must be activated as cost allocation tags before they appear in Cost Explorer or on a cost allocation report, which then groups costs by the tag.

Tags organize resources; activated cost allocation tags organize the bill. Only after activation do they show up in cost reports.

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