Question 754 of 1,024
Billing, Pricing, and SupportmediumMultiple ChoiceObjective-mapped

Quick Answer

The correct answer is that you pay the committed $100 for the hour, with $20 of the commitment being unused. This happens because a Compute Savings Plan requires you to honor your hourly commitment regardless of actual usage; the $20 gap represents unused commitment that is neither refunded nor rolled over to the next hour. AWS structures Savings Plans this way to secure predictable revenue, which in turn funds the discounted rates you receive on eligible compute services. On the AWS Certified Cloud Practitioner CLF-C02 exam, this concept tests your understanding that Savings Plans are a commitment-based discount model, not a usage-based one—a common trap is assuming unused hours carry forward like credits. A helpful memory tip: think of it like a gym membership—you pay the full monthly fee whether you show up or not, so unused commitment is simply lost.

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 has committed to a 1-year Compute Savings Plan at $100/hour. During a given hour, their actual compute usage is only worth $80 at On-Demand rates. How does the Savings Plan apply?

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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

You pay the committed $100 for the hour, with $20 of the commitment being unused

With a Compute Savings Plan, you commit to a consistent hourly spend ($100/hour) in exchange for lower compute rates. If your actual usage in an hour is only $80 at On-Demand rates, you still pay the full $100 commitment for that hour; the unused $20 is not refunded or carried over. This is because Savings Plans require you to pay the committed amount regardless of actual usage, ensuring AWS receives the predictable revenue that funds the discount.

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.

  • You pay $80 (actual usage) and the unused $20 commitment carries over to the next hour

    Why it's wrong here

    Savings Plans commitments don't carry over — unused commitment in any hour is forfeited. You pay the full $100 commitment regardless of actual usage.

  • You pay the committed $100 for the hour, with $20 of the commitment being unused

    Why this is correct

    Savings Plans commit you to pay a fixed hourly rate. If actual usage is below commitment, you pay the committed amount — the unused portion doesn't carry over.

    Related concept

    Read the scenario before looking for a memorised answer.

  • You are refunded the $20 unused portion at end of month

    Why it's wrong here

    Savings Plans don't provide refunds for under-utilization — unused commitment is the cost of the flexibility and discounts provided.

  • You pay $80 discounted at the Savings Plan rate, saving even more than committed

    Why it's wrong here

    When under the commitment, the discount applies to actual usage but you still pay the full committed amount for the hour — saving below the commitment doesn't improve the discount.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates assume unused Savings Plan commitment is either refunded or carried over, similar to a prepaid service credit, when in fact it is forfeited per hour, testing your understanding that Savings Plans are a commitment-based discount model, not a usage-based credit.

Detailed technical explanation

How to think about this question

Under the hood, a Compute Savings Plan applies a discount to eligible compute usage (EC2, Fargate, Lambda) up to the hourly commitment. Usage beyond the commitment is charged at On-Demand rates. Unused commitment is not rolled over or refunded because the pricing model is based on a fixed hourly reservation; this is similar to how Reserved Instances work, where you pay for the reservation regardless of utilization. In a real-world scenario, if a company consistently underutilizes its commitment, it may be more cost-effective to choose a lower hourly commitment or switch to a different Savings Plan type (e.g., EC2 Instance Savings Plan) that aligns better with usage patterns.

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: You pay the committed $100 for the hour, with $20 of the commitment being unused — With a Compute Savings Plan, you commit to a consistent hourly spend ($100/hour) in exchange for lower compute rates. If your actual usage in an hour is only $80 at On-Demand rates, you still pay the full $100 commitment for that hour; the unused $20 is not refunded or carried over. This is because Savings Plans require you to pay the committed amount regardless of actual usage, ensuring AWS receives the predictable revenue that funds the discount.

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

1 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 has 10 EC2 On-Demand instances running. They purchase a 1-year Compute Savings Plan for a commitment equivalent to 6 instances. What happens to the remaining 4 instances' cost?

hard
  • A.The remaining 4 instances are free since the Savings Plan covers all usage
  • B.The remaining 4 instances are charged at On-Demand rates
  • C.The remaining 4 instances are charged at Spot Instance rates
  • D.AWS suspends the 4 excess instances to enforce the Savings Plan limit

Why B: A Compute Savings Plan applies to any EC2 instance usage up to the committed hourly amount (in this case, equivalent to 6 instances). Usage beyond that commitment is charged at standard On-Demand rates. Therefore, the remaining 4 instances are billed at On-Demand prices because the Savings Plan does not cover usage exceeding the commitment.

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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.