- A
Set an AWS Budget alert for when expensive instances are launched
Why wrong: Budget alerts notify after charges are incurred — they don't prevent expensive instances from being launched.
- B
Apply an SCP or IAM policy that denies launching specific expensive instance types
IAM condition keys (ec2:InstanceType) can restrict which instance types can be launched. At the org level, SCPs enforce this across all accounts without override.
- C
Enable AWS Cost Explorer recommendations
Why wrong: Cost Explorer recommendations suggest rightsizing after instances are running — they don't prevent expensive instances from being launched.
- D
Enable Trusted Advisor and review weekly
Why wrong: Trusted Advisor identifies issues after resources are provisioned — it's reactive, not a preventive control.
Quick Answer
The answer is applying an SCP or IAM policy that denies launching specific expensive instance types. This is correct because Service Control Policies (SCPs) and IAM policies operate at the API level, using a deny effect on `ec2:RunInstances` with a condition on `ec2:InstanceType` to block provisioning before any resources are created, making it a proactive governance control rather than a reactive or advisory measure. On the AWS Certified Cloud Practitioner CLF-C02 exam, this question tests your understanding of how to enforce cost governance in real time, and a common trap is confusing budget alerts or tagging policies—which only notify or report after the fact—with actual preventive controls. The key distinction is that SCPs and IAM policies prevent the action entirely, while other methods merely warn or track it. Memory tip: think “Deny before you buy”—if you want to prevent expensive instance provisioning, block the API call itself, not just the bill.
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 wants to implement governance controls that prevent their developers from provisioning expensive instance types. Which approach is most effective?
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
Apply an SCP or IAM policy that denies launching specific expensive instance types
Option B is correct because Service Control Policies (SCPs) or IAM policies can explicitly deny the launch of specific expensive instance types (e.g., `p3.2xlarge` or `x1e.32xlarge`) at the API level, preventing the action before any resources are created. This proactive governance approach enforces compliance in real time, unlike reactive or advisory methods. By attaching a deny effect for `ec2:RunInstances` with a condition on `ec2:InstanceType`, the policy blocks unauthorized instance provisioning regardless of the user's role or account.
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.
- ✗
Set an AWS Budget alert for when expensive instances are launched
Why it's wrong here
Budget alerts notify after charges are incurred — they don't prevent expensive instances from being launched.
- ✓
Apply an SCP or IAM policy that denies launching specific expensive instance types
Why this is correct
IAM condition keys (ec2:InstanceType) can restrict which instance types can be launched. At the org level, SCPs enforce this across all accounts without override.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable AWS Cost Explorer recommendations
Why it's wrong here
Cost Explorer recommendations suggest rightsizing after instances are running — they don't prevent expensive instances from being launched.
- ✗
Enable Trusted Advisor and review weekly
Why it's wrong here
Trusted Advisor identifies issues after resources are provisioned — it's reactive, not a preventive control.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse reactive cost management tools (like budgets and Cost Explorer) with proactive governance controls, assuming alerts or recommendations can prevent actions rather than just monitor or advise.
Detailed technical explanation
How to think about this question
Under the hood, SCPs are applied at the AWS Organizations level and affect all IAM users and roles in member accounts, while IAM policies are attached directly to principals; both use the same policy language with `ec2:RunInstances` and a `StringNotEquals` condition on `ec2:InstanceType` to deny all but approved types. A subtle behavior is that SCPs cannot grant permissions—they only filter what is allowed by IAM policies—so the deny must be explicit. In a real-world scenario, a company might combine an SCP with a resource-level condition to block `g4dn.xlarge` and larger instances across all regions, ensuring even a root user in a member account cannot bypass the control.
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: Apply an SCP or IAM policy that denies launching specific expensive instance types — Option B is correct because Service Control Policies (SCPs) or IAM policies can explicitly deny the launch of specific expensive instance types (e.g., `p3.2xlarge` or `x1e.32xlarge`) at the API level, preventing the action before any resources are created. This proactive governance approach enforces compliance in real time, unlike reactive or advisory methods. By attaching a deny effect for `ec2:RunInstances` with a condition on `ec2:InstanceType`, the policy blocks unauthorized instance provisioning regardless of the user's role or account.
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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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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