Question 543 of 988
CLF-C02 Billing, Pricing, and Support Practice Question
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?
⚠ Common exam trap
Candidates often think Savings Plans need to be purchased in each account or require additional configuration like tags or Billing Conductor, when in fact consolidated billing automatically shares the discount across the entire organization.
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
✓
The Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization.
When a Compute Savings Plan is purchased in the management account of an AWS Organization with consolidated billing enabled, the discount is automatically shared across all member accounts. This is because consolidated billing aggregates all usage across the organization, and Savings Plans apply discounts to the combined eligible usage, regardless of which account incurred the cost.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization.
Why this is correct
In an AWS Organization with consolidated billing, the management account acts as the payer account. A Savings Plan purchased there is a single hourly commitment that applies to the combined eligible compute usage (EC2, Fargate, and Lambda) of all member accounts. The discount is automatically applied to qualifying usage wherever it occurs across the organization, with no need to purchase or link anything per member account.
- ✗
The Savings Plan must be purchased separately in each account where the discount is needed.
Why it's wrong here
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.
When this WOULD be correct
This would be correct if the accounts were not under a single consolidated billing family in AWS Organizations, or if the question specified that each account must independently manage its own discounts without sharing across the organization.
- ✗
The finance team must create custom cost allocation tags to distribute the Savings Plan discount across accounts.
Why it's wrong here
Cost allocation tags are metadata labels used to categorize and report on AWS costs by department, project, or team, typically via Cost Explorer or the Cost and Usage Report. They are purely a tracking mechanism and have no influence over how Savings Plans discounts are computed or applied. Discounts are determined by the consolidated billing structure and the Savings Plan's regional scope, not by tags attached to resources.
When this WOULD be correct
If the question asked how to allocate or track the Savings Plan discount costs to specific departments or projects within the organization, creating custom cost allocation tags would be the correct method to enable cost tracking and reporting.
- ✗
The Savings Plan must be linked to each member account using the AWS Billing Conductor.
Why it's wrong here
AWS Billing Conductor is a billing customization service that lets you create billing groups and define custom rates for internal chargeback or cost allocation to member accounts. It does not, however, enable or modify the sharing of Savings Plans discounts; that sharing is an automatic feature of consolidated billing when the plan is purchased by the management account. Linking a Savings Plan to member accounts through Billing Conductor is neither possible nor required—the discount flows through the organization's payer relationship.
When this WOULD be correct
This option would be correct if the question asked about distributing custom pricing or showback charges across accounts for internal cost allocation, where AWS Billing Conductor is used to create custom billing rates and reports.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The CLF-C02 exam frequently reuses these exact scenarios with slightly different constraints.
✓The Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization.Correct answer▾
Why this is correct
In an AWS Organization with consolidated billing, the management account acts as the payer account. A Savings Plan purchased there is a single hourly commitment that applies to the combined eligible compute usage (EC2, Fargate, and Lambda) of all member accounts. The discount is automatically applied to qualifying usage wherever it occurs across the organization, with no need to purchase or link anything per member account.
✗The Savings Plan must be purchased separately in each account where the discount is needed.Wrong answer — click to see why▾
Why this is wrong here
Savings Plans purchased in the management account automatically apply to all accounts in the organization when consolidated billing is enabled, so separate purchases are unnecessary and would not provide additional benefit.
★ When this WOULD be the correct answer
This would be correct if the accounts were not under a single consolidated billing family in AWS Organizations, or if the question specified that each account must independently manage its own discounts without sharing across the organization.
Why candidates choose this
Candidates may think each account needs its own Savings Plan because they are familiar with separate billing or assume discounts are account-specific, not realizing that consolidated billing enables cross-account discount sharing.
✗The finance team must create custom cost allocation tags to distribute the Savings Plan discount across accounts.Wrong answer — click to see why▾
Why this is wrong here
Savings Plans discounts are automatically applied to eligible usage across all accounts in an AWS Organization when purchased in the management account; custom cost allocation tags are used for tracking costs, not for distributing discounts.
★ When this WOULD be the correct answer
If the question asked how to allocate or track the Savings Plan discount costs to specific departments or projects within the organization, creating custom cost allocation tags would be the correct method to enable cost tracking and reporting.
Why candidates choose this
Candidates may confuse cost allocation tags with discount distribution, thinking that tags are needed to apply or share the Savings Plan benefit across accounts, rather than understanding that discounts are automatically applied at the organization level.
✗The Savings Plan must be linked to each member account using the AWS Billing Conductor.Wrong answer — click to see why▾
Why this is wrong here
AWS Billing Conductor is a tool for custom billing and reporting, not for applying Savings Plan discounts. Savings Plan discounts are automatically shared across all accounts in an organization when purchased in the management account, without needing to link plans to accounts via Billing Conductor.
★ When this WOULD be the correct answer
This option would be correct if the question asked about distributing custom pricing or showback charges across accounts for internal cost allocation, where AWS Billing Conductor is used to create custom billing rates and reports.
Why candidates choose this
Candidates may confuse AWS Billing Conductor with a mechanism to apply discounts or link benefits across accounts, as its name suggests a role in billing distribution, leading to the incorrect assumption that it is required for Savings Plan sharing.
Analysis generated from the official CLF-C02blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Quick reference
Cloud Service Model Comparison
| Model | You Manage | Provider Manages | Examples |
|---|---|---|---|
| IaaS | OS, runtime, apps, data | Hardware, hypervisor, networking | EC2, Azure VMs, GCP Compute Engine |
| PaaS | Apps and data | OS, runtime, middleware, hardware | Elastic Beanstalk, Azure App Service |
| SaaS | Data and settings only | Everything else | Microsoft 365, Salesforce, Workday |
| FaaS / Serverless | Function code only | Infra, scaling, runtime | Lambda, Azure Functions, Cloud Run |
| CaaS | Containers and apps | Kubernetes, OS, hardware | EKS, AKS, GKE |
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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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