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AWS Billing, Pricing, and Cost Management Flashcards

6 cards from real AWS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which AWS pricing model allows you to commit to a consistent amount of compute usage (measured in $/hour) for a 1- or 3-year term in exchange for a discount of up to 66% compared to On-Demand pricing?

    Answer: Savings Plans

    Savings Plans offer flexible discounts (up to 66%) in exchange for a commitment to a consistent dollar-per-hour spend over 1 or 3 years. Unlike Reserved Instances, Savings Plans automatically apply to any eligible compute usage (EC2, Fargate, Lambda) regardless of instance family or region.

  2. A company wants to receive an alert when its monthly AWS bill exceeds $500. Which AWS service should they use?

    Answer: AWS Budgets

    AWS Budgets lets you set custom cost, usage, or reservation budgets and triggers SNS/email alerts when thresholds are breached. Cost Explorer is for analyzing historical spend, the Pricing Calculator estimates future costs, and Trusted Advisor provides general best-practice recommendations.

  3. Which EC2 purchasing option is most appropriate for a fault-tolerant, stateless batch processing workload that can be interrupted and resumed, where minimizing cost is the top priority?

    Answer: Spot Instances

    Spot Instances use spare EC2 capacity and can be up to 90% cheaper than On-Demand, but can be interrupted with a 2-minute warning. They are ideal for stateless, fault-tolerant workloads like batch jobs that can checkpoint and resume.

  4. What is the purpose of the AWS Free Tier's '12 months free' category?

    Answer: Services free for the first 12 months following your initial AWS account sign-up date

    '12 months free' services (e.g., 750 hours/month of t2.micro EC2, 5 GB of S3 Standard storage) are available at no charge for the first 12 months after you create your AWS account. After that period, standard pay-as-you-go rates apply.

  5. Which AWS tool provides an interactive, graphical interface to visualize, understand, and manage your AWS costs and usage over time, including forecasting future spend?

    Answer: AWS Cost Explorer

    AWS Cost Explorer is the purpose-built tool for exploring, filtering, and graphing historical cost and usage data. It also provides a 12-month forecast. The CUR provides raw granular billing data, Budgets sets alerts, and the Billing Dashboard is a high-level summary.

  6. A company uses multiple AWS accounts under AWS Organizations. Which feature allows the company to pool Reserved Instance discounts across all member accounts?

    Answer: Consolidated Billing

    Consolidated Billing in AWS Organizations combines usage across all member accounts into a single bill. This allows Reserved Instance and Savings Plans discounts purchased by any account to be shared across the organization, and also qualifies the combined usage for volume pricing tiers.