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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.

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A company's management account and five member accounts belong to one AWS Organizations organization with consolidated billing.

The organization has not turned off Reserved Instance discount sharing.

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.

  1. A. The member account receives the Reserved Instance discount for its matching usage
  2. B. The discount is lost, because Reserved Instances apply only in the account that bought them
  3. C. The member account must buy its own Reserved Instances before any discount can apply
  4. D. AWS moves the instances into the management account so the discount applies
Show the answer and explanation

Answer: A

  • A. Right: Each account in the organization can receive the hourly benefit of Reserved Instances bought by any other account, so the member account's matching usage is discounted. Learn more: Reserved Instances and Savings Plans discount sharing (opens in a new tab)
  • B. Wrong: With discount sharing left on, Reserved Instances apply across the organization, so the discount is not lost. Only turning sharing off would limit it to the buying account.
  • C. Wrong: Member accounts do not need their own Reserved Instances to receive the discount. The management account's purchase can cover their usage.
  • D. Wrong: AWS does not move running instances between accounts. The discount applies to the usage where the instances already run.

Explanation

With consolidated billing and discount sharing left on, Reserved Instance discounts are shared across the organization. The matching usage in the member account is discounted, and nothing needs to move or be bought again.

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