- A
Reserved Instances (Standard)
Why wrong: Standard Reserved Instances provide a discount in exchange for a commitment to a specific instance family, size, and region (e.g., m5.large in us-east-1). They do not allow changing the instance family or region, and they only apply to Amazon EC2, not to Lambda or Fargate. Therefore, they do not provide the required flexibility.
- B
Reserved Instances (Convertible)
Why wrong: Convertible Reserved Instances allow you to change the instance family, size, and region during the term by exchanging for another Convertible Reserved Instance, but they still apply only to Amazon EC2. They do not cover Lambda or Fargate usage, so the flexibility across compute services is not achieved.
- C
Compute Savings Plan
The Compute Savings Plan offers the highest flexibility among AWS savings options. It applies to all compute services (EC2, Lambda, Fargate), all regions, and all instance families. The discount applies to usage up to the committed amount ($/hour), and any usage beyond the commitment is charged at On-Demand rates. This matches the company's need for both savings and flexibility across compute services.
- D
EC2 Instance Savings Plan
Why wrong: The EC2 Instance Savings Plan provides a discount on Amazon EC2 usage but is restricted to a specific instance family within a chosen region. It does not cover Lambda or Fargate usage, nor does it allow changing the instance family. Hence, it does not provide the flexibility required.
CLF-C02 Billing, Pricing, and Support Practice Question
This CLF-C02 practice question tests your understanding of billing, pricing, and support. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company expects a steady baseline usage of AWS compute services (Amazon EC2, AWS Lambda, and AWS Fargate) over the next three years. They want to reduce costs compared to On-Demand pricing while maintaining the flexibility to change instance families, regions, or even switch between compute services (e.g., from EC2 to Lambda) without losing their discount. Which AWS pricing option should the company choose?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Compute Savings Plan
The Compute Savings Plan offers the highest flexibility, automatically applying discounts to any compute usage across EC2, Lambda, and Fargate, regardless of instance family, region, or compute service. It provides up to 66% savings over On-Demand while allowing the company to change instance types, regions, or switch between compute services without losing the discount. This matches the requirement for steady baseline usage with maximum flexibility.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reserved Instances (Standard)
Why it's wrong here
Standard Reserved Instances provide a discount in exchange for a commitment to a specific instance family, size, and region (e.g., m5.large in us-east-1). They do not allow changing the instance family or region, and they only apply to Amazon EC2, not to Lambda or Fargate. Therefore, they do not provide the required flexibility.
- ✗
Reserved Instances (Convertible)
Why it's wrong here
Convertible Reserved Instances allow you to change the instance family, size, and region during the term by exchanging for another Convertible Reserved Instance, but they still apply only to Amazon EC2. They do not cover Lambda or Fargate usage, so the flexibility across compute services is not achieved.
- ✓
Compute Savings Plan
Why this is correct
The Compute Savings Plan offers the highest flexibility among AWS savings options. It applies to all compute services (EC2, Lambda, Fargate), all regions, and all instance families. The discount applies to usage up to the committed amount ($/hour), and any usage beyond the commitment is charged at On-Demand rates. This matches the company's need for both savings and flexibility across compute services.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
EC2 Instance Savings Plan
Why it's wrong here
The EC2 Instance Savings Plan provides a discount on Amazon EC2 usage but is restricted to a specific instance family within a chosen region. It does not cover Lambda or Fargate usage, nor does it allow changing the instance family. Hence, it does not provide the flexibility required.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Convertible Reserved Instances with Compute Savings Plans, thinking that Convertible RIs offer similar flexibility, but they are limited to EC2 and cannot switch to Lambda or Fargate, nor change regions.
Detailed technical explanation
How to think about this question
Compute Savings Plans are a flexible pricing model that applies a per-hour commitment (e.g., $10/hour) to any compute usage, automatically covering EC2 instances, Lambda functions (based on duration and provisioned concurrency), and Fargate tasks (based on vCPU and memory). The discount is applied at the account or organizational level, and unused commitment is not refunded, making it ideal for predictable baselines. Unlike Reserved Instances, Savings Plans do not require upfront specification of instance attributes, enabling seamless migration across services and regions.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this CLF-C02 question test?
Billing, Pricing, and Support — This question tests Billing, Pricing, and Support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Compute Savings Plan — The Compute Savings Plan offers the highest flexibility, automatically applying discounts to any compute usage across EC2, Lambda, and Fargate, regardless of instance family, region, or compute service. It provides up to 66% savings over On-Demand while allowing the company to change instance types, regions, or switch between compute services without losing the discount. This matches the requirement for steady baseline usage with maximum flexibility.
What should I do if I get this CLF-C02 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This CLF-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLF-C02 exam.
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