- A
Set the 'shared' attribute to 'true' when purchasing the Reserved Instance.
Why wrong: There is no 'shared' attribute on Reserved Instance purchases. The sharing behavior is controlled by a separate setting in the Billing and Cost Management console, not during the purchase process.
- B
Enable Reserved Instance sharing in the AWS Management Console under the Billing and Cost Management service.
This is the correct action. The Reserved Instance sharing setting is found in the Billing and Cost Management console. Enabling it allows the member account's RI discount to be applied to eligible usage across all accounts in the organization, provided the aggregated usage meets the RI requirements.
- C
Enable the Reserved Instance sharing setting in the AWS Organizations console.
Why wrong: The Reserved Instance sharing setting is not available in the AWS Organizations console. It is configured in the Billing and Cost Management console. The Organizations console is used for managing policies, accounts, and organizational units, not RI sharing.
- D
No action is needed; all Reserved Instances purchased in any account within a consolidated billing environment automatically apply across all member accounts.
Why wrong: This is incorrect. Only Reserved Instances purchased by the payer account are automatically shared across all accounts. Member account RIs are not automatically shared; you must explicitly enable the sharing feature in the Billing and Cost Management console to extend the discount organization-wide.
Quick Answer
The answer is to enable Reserved Instance sharing in the AWS Management Console under the Billing and Cost Management service. This is correct because, by default, a Standard Reserved Instance (RI) purchased in a member account applies only to that account’s usage. However, in AWS Organizations with consolidated billing, you can explicitly turn on the RI sharing feature, which then allows the discount to apply to any matching m5.large instance usage across all linked accounts. For the AWS Certified Cloud Practitioner CLF-C02 exam, this concept tests your understanding of how consolidated billing centralizes cost management but does not automatically share RI discounts—sharing must be manually enabled. A common trap is assuming that consolidated billing alone shares all discounts; in reality, only the billing account can enable this feature. Remember the memory tip: “RI sharing is not automatic—you must flip the switch in Billing and Cost Management to share the discount across the organization.”
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. A key principle to apply: reserved Instance sharing is configured in the Billing and Cost Management console.. 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 manages multiple AWS accounts using AWS Organizations with consolidated billing. The company purchases a Standard Reserved Instance (RI) for an Amazon EC2 m5.large instance in a member account (the production account). The finance team wants the discount from this RI to apply to any m5.large instance usage across all accounts in the organization. What must the company do to achieve this?
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
Enable Reserved Instance sharing in the AWS Management Console under the Billing and Cost Management service.
Option B is correct because in AWS Organizations with consolidated billing, Reserved Instance discounts can be shared across all accounts in the organization only if the 'RI sharing' feature is explicitly enabled in the Billing and Cost Management console. By default, RIs are scoped to the account that purchased them; enabling sharing allows the discount to apply to matching usage in any member account.
Key principle: Reserved Instance sharing is configured in the Billing and Cost Management console.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Set the 'shared' attribute to 'true' when purchasing the Reserved Instance.
Why it's wrong here
There is no 'shared' attribute on Reserved Instance purchases. The sharing behavior is controlled by a separate setting in the Billing and Cost Management console, not during the purchase process.
- ✓
Enable Reserved Instance sharing in the AWS Management Console under the Billing and Cost Management service.
Why this is correct
This is the correct action. The Reserved Instance sharing setting is found in the Billing and Cost Management console. Enabling it allows the member account's RI discount to be applied to eligible usage across all accounts in the organization, provided the aggregated usage meets the RI requirements.
Related concept
Reserved Instance sharing is configured in the Billing and Cost Management console.
- ✗
Enable the Reserved Instance sharing setting in the AWS Organizations console.
Why it's wrong here
The Reserved Instance sharing setting is not available in the AWS Organizations console. It is configured in the Billing and Cost Management console. The Organizations console is used for managing policies, accounts, and organizational units, not RI sharing.
- ✗
No action is needed; all Reserved Instances purchased in any account within a consolidated billing environment automatically apply across all member accounts.
Why it's wrong here
This is incorrect. Only Reserved Instances purchased by the payer account are automatically shared across all accounts. Member account RIs are not automatically shared; you must explicitly enable the sharing feature in the Billing and Cost Management console to extend the discount organization-wide.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume all RIs in a consolidated billing environment are automatically shared, but AWS requires explicit opt-in via the Billing and Cost Management console to enable cross-account RI sharing.
Detailed technical explanation
How to think about this question
When RI sharing is enabled, AWS applies the discounted hourly rate to any eligible usage across accounts in the organization, up to the number of instances purchased. The billing account (payer account) sees the consolidated bill, but the discount is applied at the usage line-item level. This is particularly useful for production workloads that span multiple accounts, as it maximizes RI utilization and reduces overall costs.
KKey Concepts to Remember
- Reserved Instance sharing is configured in the Billing and Cost Management console.
- RI sharing allows member account RIs to apply discounts across an AWS Organization.
- Payer account RIs are automatically shared across all linked accounts.
- Enabling RI sharing optimizes cost savings by maximizing RI utilization across the organization.
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
Reserved Instance sharing is configured in the Billing and Cost Management console.
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.
Review reserved Instance sharing is configured in the Billing and Cost Management console., then practise related CLF-C02 questions on the same topic to reinforce the concept.
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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 — Reserved Instance sharing is configured in the Billing and Cost Management console..
What is the correct answer to this question?
The correct answer is: Enable Reserved Instance sharing in the AWS Management Console under the Billing and Cost Management service. — Option B is correct because in AWS Organizations with consolidated billing, Reserved Instance discounts can be shared across all accounts in the organization only if the 'RI sharing' feature is explicitly enabled in the Billing and Cost Management console. By default, RIs are scoped to the account that purchased them; enabling sharing allows the discount to apply to matching usage in any member account.
What should I do if I get this CLF-C02 question wrong?
Review reserved Instance sharing is configured in the Billing and Cost Management console., then practise related CLF-C02 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
Reserved Instance sharing is configured in the Billing and Cost Management console.
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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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