- A
AWS Cost Explorer
Why wrong: AWS Cost Explorer provides rich dashboards and graphs to visualize cost and usage data, but it does not send proactive alerts based on budget thresholds or cost anomalies. It is a reactive analysis tool, not an alerting service.
- B
AWS Budgets
AWS Budgets allows you to create cost budgets with threshold alerts (e.g., 80% of budget). It also supports cost anomaly detection budgets that leverage machine learning to detect unexpected daily spending spikes and send alerts. This single service meets both requirements.
- C
AWS Trusted Advisor
Why wrong: AWS Trusted Advisor inspects your AWS environment and provides recommendations on cost optimization, performance, security, and fault tolerance. It does not provide budget threshold alerts or anomaly detection for daily cost spikes.
- D
AWS CloudTrail
Why wrong: AWS CloudTrail records API activity across your AWS accounts. It is used for auditing, security analysis, and operational troubleshooting. It does not monitor costs or send budget or anomaly alerts.
CLF-C02 Billing, Pricing, and Support Practice Question
This CLF-C02 practice question tests your understanding of billing, pricing, and support. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. A key principle to apply: aWS Budgets allows setting custom cost and usage budgets.. 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 uses multiple AWS accounts managed through AWS Organizations. The finance team wants to receive a notification when the overall monthly spending in any account reaches 80% of the budgeted amount. Additionally, the team wants to be alerted if there is an unexpected daily spike in costs, such as a 50% increase compared to the previous day, so they can investigate anomalies early. Which AWS feature should the finance team configure to meet both requirements with a single managed service?
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
AWS Budgets
AWS Budgets allows you to set custom cost and usage budgets and receive alerts when actual or forecasted costs exceed (or are expected to exceed) your budgeted thresholds. You can configure a cost budget with an alert at 80% of the monthly budgeted amount, and also create a separate budget or use a cost anomaly detection integration to trigger an alert when daily costs spike by 50% compared to the previous day. This meets both requirements using a single managed service.
Key principle: AWS Budgets allows setting custom cost and usage budgets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
AWS Cost Explorer
Why it's wrong here
AWS Cost Explorer provides rich dashboards and graphs to visualize cost and usage data, but it does not send proactive alerts based on budget thresholds or cost anomalies. It is a reactive analysis tool, not an alerting service.
- ✓
AWS Budgets
Why this is correct
AWS Budgets allows you to create cost budgets with threshold alerts (e.g., 80% of budget). It also supports cost anomaly detection budgets that leverage machine learning to detect unexpected daily spending spikes and send alerts. This single service meets both requirements.
Related concept
AWS Budgets allows setting custom cost and usage budgets.
- ✗
AWS Trusted Advisor
Why it's wrong here
AWS Trusted Advisor inspects your AWS environment and provides recommendations on cost optimization, performance, security, and fault tolerance. It does not provide budget threshold alerts or anomaly detection for daily cost spikes.
- ✗
AWS CloudTrail
Why it's wrong here
AWS CloudTrail records API activity across your AWS accounts. It is used for auditing, security analysis, and operational troubleshooting. It does not monitor costs or send budget or anomaly alerts.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse AWS Cost Explorer's visualization capabilities with proactive alerting, or assume Trusted Advisor's cost optimization checks include budget notifications, when in fact only AWS Budgets provides configurable threshold-based and anomaly-based alerts.
Detailed technical explanation
How to think about this question
AWS Budgets can be integrated with Amazon Simple Notification Service (SNS) to send email or SMS alerts when actual or forecasted costs exceed defined thresholds. For daily spike detection, you can use AWS Budgets' cost anomaly detection feature, which uses machine learning to establish a baseline of daily spending and alerts you when a day's cost deviates by a specified percentage (e.g., 50%) from the expected range. Under the hood, AWS Budgets evaluates your cost and usage data from AWS Cost and Usage Reports every 6-12 hours, so alerts are near real-time but not instantaneous.
KKey Concepts to Remember
- AWS Budgets allows setting custom cost and usage budgets.
- It supports threshold alerts based on actual or forecasted spend.
- AWS Budgets includes cost anomaly detection using machine learning.
- Budgets can be applied across multiple accounts in AWS Organizations.
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
AWS Budgets allows setting custom cost and usage budgets.
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 aWS Budgets allows setting custom cost and usage budgets., 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 — AWS Budgets allows setting custom cost and usage budgets..
What is the correct answer to this question?
The correct answer is: AWS Budgets — AWS Budgets allows you to set custom cost and usage budgets and receive alerts when actual or forecasted costs exceed (or are expected to exceed) your budgeted thresholds. You can configure a cost budget with an alert at 80% of the monthly budgeted amount, and also create a separate budget or use a cost anomaly detection integration to trigger an alert when daily costs spike by 50% compared to the previous day. This meets both requirements using a single managed service.
What should I do if I get this CLF-C02 question wrong?
Review aWS Budgets allows setting custom cost and usage budgets., then practise related CLF-C02 questions on the same topic to reinforce the concept.
What is the key concept behind this question?
AWS Budgets allows setting custom cost and usage budgets.
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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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