Exams / CLF-C02 / Organizations and consolidated billing / Question 1
CLF-C02 practice question: Organizations and consolidated billing
Billing, Pricing, and Support A free question from our original CLF-C02 practice exam. Try it, then open the answer to see why each option is right or wrong.
A company's management account and five member accounts are in one organisation with consolidated billing. The finance team bought Amazon EC2 Reserved Instances in the management account, but the matching instances run in a member account. What happens?
Choose one answer.
- AA. The discount is lost, because Reserved Instances apply only in the account that bought them.
- BB. The member account must buy its own Reserved Instances before any discount can apply.
- CC. The Reserved Instance discount can apply to the matching usage in the member account.
- DD. AWS automatically moves the instances into the management account so the discount can apply.
Show the answer and explanation
Answer: C
- A. Wrong: Under consolidated billing, Reserved Instance pricing benefits are shared across the accounts in the organisation.
- B. Wrong: No extra purchase is needed. The existing Reserved Instances can benefit matching usage in other accounts.
- C. Right: Correct. Usage across member accounts is combined, so Reserved Instance discounts are shared across the consolidated billing family.
- D. Wrong: AWS does not move instances between accounts. Billing is combined, but resources stay where they are.
Explanation
Consolidated billing in AWS Organizations gives one bill paid by the management account and combines usage across all accounts. This lets the organisation reach volume pricing tiers sooner and share Reserved Instance and Savings Plans discounts between accounts, at no extra cost. (Capacity reserved by zonal Reserved Instances is not shared, but the billing discount is.)
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