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A startup recently signed up for AWS and is using the AWS Free Tier to run a small web application. The startup's finance lead wants to monitor the team's usage of AWS services to ensure they do not exceed the Free Tier limits and incur unexpected charges. The finance lead needs a tool that can proactively send an alert when the team approaches 80% of the Free Tier limit for a specific service, such as Amazon EC2. Which AWS service or feature should the finance lead use to set up this alert?

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A startup recently signed up for AWS and is using the AWS Free Tier to run a small web application. The startup's finance lead wants to monitor the team's usage of AWS services to ensure they do not exceed the Free Tier limits and incur unexpected charges. The finance lead needs a tool that can proactively send an alert when the team approaches 80% of the Free Tier limit for a specific service, such as Amazon EC2. Which AWS service or feature should the finance lead use to set up this alert?

Answer choices

Why each option matters

Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.

A

Best answer

AWS Budgets

AWS Budgets allows you to create a budget with a Free Tier usage alert. You can set a threshold (e.g., 80%) for a specific service and receive email notifications when usage reaches that threshold. This is the correct tool for proactive monitoring of Free Tier limits.

B

Distractor review

AWS Cost Explorer

AWS Cost Explorer is an interactive tool for analyzing historical cost and usage data, but it does not proactively send alerts on Free Tier usage thresholds. It is used for visual exploration, not alerting.

C

Distractor review

AWS Trusted Advisor

AWS Trusted Advisor provides a 'Free Tier Usage' check that shows your current usage against Free Tier limits in the dashboard, but it does not support custom threshold alerts. It is a reactive check, not a proactive alerting tool.

D

Distractor review

AWS Personal Health Dashboard

AWS Personal Health Dashboard provides alerts and remediation guidance when AWS experiences events that may affect you, such as service outages or maintenance. It does not track your own usage or Free Tier limits.

Common exam trap

Common exam trap: answer the scenario, not the keyword

Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.

Technical deep dive

How to think about this question

This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.

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.
  • Use explanations to understand the rule behind the answer.

TExam Day Tips

  • Underline the problem statement mentally.
  • 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.

Related practice questions

Related CLF-C02 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

More questions from this exam

Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.

Question 1

A developer needs to launch a test server for a new application prototype. The developer logs into the AWS Management Console, selects an Amazon EC2 instance type, configures the security group, and starts the instance. The instance is running within two minutes, and the developer did not need to submit a formal request to the company's IT procurement team or wait for approval from a cloud administrator. Which essential characteristic of cloud computing does this scenario best demonstrate?

Question 2

A solutions architect is planning a new web application on AWS. The workload will include 3 Amazon EC2 instances (t3.medium) running 24/7, an Application Load Balancer, and an Amazon RDS for MySQL db.t3.small database. The architect needs to estimate the monthly cost for the first year, considering different purchasing options (On-Demand, 1-year All Upfront Reserved Instance, and Compute Savings Plan). Which AWS tool should the architect use to create this estimate?

Question 3

A company's development team frequently needs temporary test environments. A developer can log into the AWS Management Console, select an Amazon EC2 instance type, configure storage, and launch the instance within minutes without any interaction with the IT infrastructure team. This capability is an example of which essential characteristic of cloud computing?

Question 4

A company's finance team needs to analyze AWS spending in detail. They require a report that includes hourly cost data for each AWS service, each individual resource (e.g., a specific EC2 instance), and any cost allocation tags applied. The team plans to export this data to an Amazon S3 bucket and then import it into a custom business intelligence (BI) analytics dashboard. Which AWS tool should the finance team use to generate this level of detailed cost data?

Question 5

A company uses AWS for its development environment. The finance team wants to set a monthly budget of $10,000. They want to receive an email notification when the actual costs reach 80% of the budget ($8,000) and again when costs exceed the budget. The team needs a managed AWS service that can automatically send these alerts without requiring custom code or third-party tools. Which AWS service should the team use?

Question 6

A company uses AWS Organizations to manage multiple accounts. The security team needs to enforce a policy that restricts SSH access (port 22) from the internet (0.0.0.0/0) in all VPCs across all accounts. The team wants to centrally define the allowed rules and automatically apply them to newly created VPCs and security groups, while also automatically remediating any existing non-compliant security groups. Which AWS service should the team use?

FAQ

Questions learners often ask

What does this CLF-C02 question test?

Read the scenario before looking for a memorised answer.

What is the correct answer to this question?

The correct answer is: AWS Budgets — The correct answer is AWS Budgets because AWS Budgets supports creating Free Tier usage alerts. You can set a budget for a specific service (e.g., Amazon EC2) with a threshold (e.g., 80% of Free Tier limit) and configure AWS Budgets to send an email alert when usage reaches that threshold. This is the most appropriate tool for proactive monitoring of Free Tier limits. AWS Cost Explorer (Option B) is a visualization tool that helps analyze historical costs and usage, but it does not proactively alert on Free Tier limits. AWS Trusted Advisor (Option C) has cost optimization checks, but its 'Free Tier Usage' check only provides a snapshot view in the dashboard and does not offer custom threshold alerts. AWS Personal Health Dashboard (Option D) provides information about AWS service events that may affect you, not Free Tier usage tracking.

What should I do if I get this CLF-C02 question wrong?

Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.

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