AWS AWS Cost Management 3 — Questions and Answers
Question 1: What is the difference between an All Upfront and No Upfront Reserved Instance?
- All Upfront has no discount
- All Upfront pays everything at purchase for the largest discount; No Upfront pays monthly with a smaller discount (Correct answer)
- No Upfront requires a 5-year term
- They are identical in price
Correct answer: All Upfront pays everything at purchase for the largest discount; No Upfront pays monthly with a smaller discount
All Upfront pays the full cost at purchase for the deepest discount, while No Upfront spreads payments with a smaller discount.
Question 2: Which feature of Reserved Instances allows changing instance size within the same family while keeping the discount?
- Convertible RIs
- Regional benefit / instance size flexibility (Correct answer)
- Capacity Reservations
- Spot Fleet
Correct answer: Regional benefit / instance size flexibility
Regional RIs provide instance size flexibility so the discount applies across sizes in the same family.
Question 3: What does AWS Compute Optimizer primarily recommend?
- Cheaper regions
- Optimal instance types and sizes based on utilization metrics (Correct answer)
- S3 storage classes
- IAM policy changes
Correct answer: Optimal instance types and sizes based on utilization metrics
Compute Optimizer analyzes utilization to recommend right-sized EC2, EBS, Lambda, and ASG configurations.
Question 4: Which S3 feature automatically moves objects to cheaper storage tiers based on access patterns with no retrieval fees?
- S3 Glacier Deep Archive
- S3 Intelligent-Tiering (Correct answer)
- S3 One Zone-IA
- S3 Transfer Acceleration
Correct answer: S3 Intelligent-Tiering
S3 Intelligent-Tiering moves data between access tiers automatically without retrieval charges.
Question 5: A team wants to prevent a single account from spending beyond a limit. Which combination is most appropriate?
- AWS Budgets with a budget action to apply an IAM/SCP restriction (Correct answer)
- CloudWatch alarms only
- Trusted Advisor only
- Cost Explorer only
Correct answer: AWS Budgets with a budget action to apply an IAM/SCP restriction
Budget actions can automatically apply IAM or SCP controls when a budget threshold is breached.
Question 6: Which pricing model is best for steady-state, predictable workloads running continuously for a year or more?
- Spot Instances
- On-Demand
- Reserved Instances or Savings Plans (Correct answer)
- Dedicated On-Demand
Correct answer: Reserved Instances or Savings Plans
Reserved Instances and Savings Plans deliver the best value for predictable, long-running workloads.
Question 7: What is the benefit of using AWS Cost Categories?
- They encrypt invoices
- They group costs into custom buckets using rules for chargeback and reporting (Correct answer)
- They reserve compute capacity
- They reduce data transfer fees
Correct answer: They group costs into custom buckets using rules for chargeback and reporting
Cost Categories let you group costs into meaningful, rule-based buckets for organized reporting and chargeback.
AWS AWS Cost Management 3
What is the difference between an All Upfront and No Upfront Reserved Instance?