Question 220 of 1,024
Billing, Pricing, and SupportmediumMultiple ChoiceObjective-mapped

Quick Answer

The answer is AWS Pricing Calculator, the correct choice because it enables detailed monthly cost modeling for services like EC2, RDS, and S3 before migration. This tool allows you to configure specific instance types, storage sizes, and data transfer volumes, then instantly generate a shareable estimate link—perfect for presenting to a CFO. On the AWS Certified Cloud Practitioner CLF-C02 exam, this question tests your understanding of cost estimation tools versus cost tracking tools like AWS Cost Explorer; a common trap is confusing the Pricing Calculator (for pre-deployment estimates) with Cost Explorer (for analyzing existing spend). Remember, if you need to model different scenarios and produce a quote before building anything, reach for the Pricing Calculator. A simple memory tip: “Plan before you pay—use the Calculator to estimate your day.”

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 plans to migrate a three-tier web application to AWS. The application will run on Amazon EC2 instances, use an Amazon RDS database, and an Application Load Balancer. The CFO needs a detailed monthly cost estimate before migration. The solutions architect needs to model different instance types, storage sizes, and data transfer volumes, and then share the estimate with the finance team. Which AWS service should the solutions architect use to meet these requirements?

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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 Pricing Calculator

AWS Pricing Calculator allows the solutions architect to model different EC2 instance types, RDS storage sizes, and data transfer volumes to generate a detailed monthly cost estimate. It provides granular control over pricing assumptions, including reserved vs. on-demand instances, and produces a shareable estimate link for the finance team. This makes it the correct tool for pre-migration cost modeling.

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.

  • AWS Pricing Calculator

    Why this is correct

    Correct. The AWS Pricing Calculator allows users to estimate monthly costs for AWS services, model different configurations, and share estimate links with stakeholders. It is designed for pre-migration cost planning.

    Related concept

    Read the scenario before looking for a memorised answer.

  • AWS Cost Explorer

    Why it's wrong here

    Incorrect. AWS Cost Explorer provides visualization and analysis of historical AWS costs and usage, along with forecasting. It does not generate upfront estimates for planned resources before they are deployed.

  • AWS Budgets

    Why it's wrong here

    Incorrect. AWS Budgets is used to set spending limits and receive alerts when costs exceed thresholds. It does not provide the detailed, customizable cost estimates needed for planning a new migration.

  • AWS Cost and Usage Report

    Why it's wrong here

    Incorrect. The AWS Cost and Usage Report contains the most detailed billing data, but it is generated after the resources have been used. It cannot produce estimates for resources that have not yet been launched.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates confuse AWS Cost Explorer (a historical analysis tool) with AWS Pricing Calculator (a future estimation tool), or assume AWS Budgets can generate cost estimates when it only monitors and alerts on actual spend against predefined budgets.

Detailed technical explanation

How to think about this question

AWS Pricing Calculator uses real-time pricing data from the AWS Price List API, allowing users to toggle between On-Demand, Reserved Instance (Standard/Convertible), and Savings Plans pricing models. It also supports estimating data transfer costs across regions and internet egress, which is critical for three-tier applications with an ALB. The tool outputs a consolidated estimate in a shareable URL or CSV, enabling iterative what-if analysis without incurring any actual charges.

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: AWS Pricing Calculator — AWS Pricing Calculator allows the solutions architect to model different EC2 instance types, RDS storage sizes, and data transfer volumes to generate a detailed monthly cost estimate. It provides granular control over pricing assumptions, including reserved vs. on-demand instances, and produces a shareable estimate link for the finance team. This makes it the correct tool for pre-migration cost modeling.

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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Same concept, more angles

2 more ways this is tested on CLF-C02

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. A company is planning to migrate its on-premises database and web application to AWS. The solutions architect needs to provide a detailed monthly cost estimate for the AWS resources that will be used, including Amazon EC2 instances, Amazon RDS database instances, and Amazon S3 storage. The architect wants to specify instance types, storage sizes, data transfer amounts, and other parameters to get a precise estimate before building the environment. Which AWS tool should the architect use?

medium
  • A.AWS Cost Explorer
  • B.AWS Budgets
  • C.AWS Pricing Calculator
  • D.AWS Total Cost of Ownership (TCO) Calculator

Why C: The AWS Pricing Calculator (formerly Simple Monthly Calculator) allows users to specify exact instance types, storage sizes, data transfer amounts, and other parameters for services like EC2, RDS, and S3 to generate a detailed monthly cost estimate before provisioning resources. This makes it the correct tool for the architect's requirement of a precise, pre-build cost estimate.

Variation 2. A company is planning to migrate a legacy application to AWS. The solutions architect needs to estimate the monthly cost of running Amazon EC2 instances, Amazon RDS databases, and Amazon S3 storage. The architect wants to compare different instance types, storage classes, and pricing models (e.g., On-Demand vs. Reserved Instances) to find the most cost-effective configuration. The team requires a tool that provides a detailed, itemized cost estimate without incurring any actual charges, and allows saving and sharing the estimate with stakeholders. Which AWS tool should the solutions architect use?

medium
  • A.AWS Budgets
  • B.AWS Cost Explorer
  • C.AWS Pricing Calculator
  • D.AWS Cost and Usage Report

Why C: The AWS Pricing Calculator (formerly AWS Simple Monthly Calculator) is the correct tool because it allows users to build a detailed, itemized cost estimate for AWS services like EC2, RDS, and S3 without incurring any actual charges. It supports comparing different instance types, storage classes, and pricing models (On-Demand vs. Reserved Instances), and provides a shareable link to save and share the estimate with stakeholders.

Last reviewed: Jun 11, 2026

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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.