A company has multiple AWS accounts managed under AWS Organizations with consolidated billing enabled. The company purchases a 3-year Compute Savings Plan to reduce costs on Amazon EC2, AWS Fargate, and AWS Lambda usage. The finance team wants the discount from the Savings Plan to apply to eligible usage across all accounts in the organization. What configuration is required to achieve this?
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.
Best answer
The Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization.
This configuration is correct. With consolidated billing, Savings Plans purchased in the management account cover eligible usage across all member accounts automatically.
Distractor review
The Savings Plan must be purchased separately in each account where the discount is needed.
Purchasing separate Savings Plans in each account negates the benefit of consolidated billing and may lead to underutilized commitments. It is not required because the organization can share a single plan purchased from the management account.
Distractor review
The finance team must create custom cost allocation tags to distribute the Savings Plan discount across accounts.
Cost allocation tags are used for tracking and categorizing costs, not for distributing or applying discount rates from Savings Plans.
Distractor review
The Savings Plan must be linked to each member account using the AWS Billing Conductor.
AWS Billing Conductor customizes billing and pricing for internal chargeback, but it does not enable the sharing of Savings Plan discounts across accounts. Sharing is automatically configured through consolidated billing.
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.
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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: The Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization. — When a Savings Plan is purchased in the management account of an AWS Organization that has consolidated billing enabled, the discount is automatically applied to eligible usage across all accounts in the organization. The benefit is shared without additional configuration. Purchasing Savings Plans individually in each account would not take advantage of the aggregated usage from all accounts, potentially leading to underutilized commitments. Cost allocation tags are used to track costs, not to apply discounts. AWS Billing Conductor is a service that allows you to customize billing and pricing, but it does not enable Savings Plan sharing.
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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