- A
Reserved Instance discounts only apply to the account that purchased the RI
Why wrong: With consolidated billing, RI discounts are shared across all member accounts — unused RI capacity in one account benefits other accounts.
- B
RI discounts are automatically shared across all member accounts in the organization
Consolidated billing enables automatic RI discount sharing — unused RI capacity in any member account offsets On-Demand charges in other member accounts, maximizing discount utilization.
- C
RI discounts are only shared if the management account explicitly enables sharing for each RI
Why wrong: RI sharing is enabled by default for all accounts in the organization — it must be explicitly disabled for specific accounts if not desired.
- D
RI discounts cannot be shared across accounts even in an Organization
Why wrong: This is incorrect — consolidated billing in Organizations is specifically designed to enable RI and Savings Plans discount sharing.
Quick Answer
The correct answer is that Reserved Instance discounts are automatically shared across all member accounts in an AWS Organization. This happens because AWS Organizations enables consolidated billing, which pools the usage of all accounts into a single bill, allowing the hourly cost benefit of any RI purchased in one account to apply to qualifying usage from any other account in the same region. On the AWS Certified Cloud Practitioner CLF-C02 exam, this concept tests your understanding of how cost optimization works at the organizational level, and a common trap is assuming that sharing requires manual configuration or that discounts only apply to the purchasing account. Remember that the management account sees the consolidated savings, but no explicit sharing setup is needed—it’s automatic. A helpful memory tip: think of RI discount sharing like a family phone plan—one person buys the data package, and everyone in the family can use it, as long as they’re on the same plan and in the same region.
CLF-C02 Billing, Pricing, and Support Practice Question
This CLF-C02 practice question tests your understanding of billing, pricing, and support. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 uses AWS Organizations. The management account receives the consolidated bill. Which statement about Reserved Instance discount sharing in AWS Organizations is correct?
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
RI discounts are automatically shared across all member accounts in the organization
In AWS Organizations, Reserved Instance (RI) discounts are automatically shared across all accounts in the organization, provided the accounts are under the same consolidated billing family and the RIs are in the same AWS region. This means that if one member account purchases an RI, the hourly cost benefit can apply to qualifying usage from any other account in the organization, reducing the overall bill. The management account receives the consolidated bill and can see the aggregated savings, but no explicit sharing configuration is required.
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.
- ✗
Reserved Instance discounts only apply to the account that purchased the RI
Why it's wrong here
With consolidated billing, RI discounts are shared across all member accounts — unused RI capacity in one account benefits other accounts.
- ✓
RI discounts are automatically shared across all member accounts in the organization
Why this is correct
Consolidated billing enables automatic RI discount sharing — unused RI capacity in any member account offsets On-Demand charges in other member accounts, maximizing discount utilization.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
RI discounts are only shared if the management account explicitly enables sharing for each RI
Why it's wrong here
RI sharing is enabled by default for all accounts in the organization — it must be explicitly disabled for specific accounts if not desired.
- ✗
RI discounts cannot be shared across accounts even in an Organization
Why it's wrong here
This is incorrect — consolidated billing in Organizations is specifically designed to enable RI and Savings Plans discount sharing.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume RI discounts are account-specific or require manual sharing, but AWS automatically shares them across all accounts in an organization under consolidated billing, which is a core concept tested in the CLF-C02 exam.
Detailed technical explanation
How to think about this question
Under the hood, AWS applies RI discounts at the organizational level by matching the aggregated usage of all accounts against the RI attributes (instance type, region, tenancy, and operating system). The discount is applied to the first qualifying usage encountered across the organization, which can lead to scenarios where a single RI covers usage from multiple accounts, maximizing utilization. A subtle behavior is that if accounts leave the organization, any RI discounts that were applied to their usage are retroactively adjusted, potentially resulting in a bill for the departed account.
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.
- →
Billing, Pricing, and Support — study guide chapter
Learn the concepts, then practise the questions
- →
Billing, Pricing, and Support practice questions
Targeted practice on this topic area only
- →
All CLF-C02 questions
1,024 questions across all exam domains
- →
AWS Certified Cloud Practitioner CLF-C02 study guide
Full concept coverage aligned to exam objectives
- →
CLF-C02 practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related CLF-C02 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Cloud Concepts practice questions
Practise CLF-C02 questions linked to Cloud Concepts.
Security and Compliance practice questions
Practise CLF-C02 questions linked to Security and Compliance.
Cloud Technology and Services practice questions
Practise CLF-C02 questions linked to Cloud Technology and Services.
Billing, Pricing, and Support practice questions
Practise CLF-C02 questions linked to Billing, Pricing, and Support.
AWS shared responsibility model practice questions
Practise CLF-C02 questions linked to AWS shared responsibility model.
AWS IAM practice questions
Practise CLF-C02 questions linked to AWS IAM.
AWS pricing practice questions
Practise CLF-C02 questions linked to AWS pricing.
AWS support plans practice questions
Practise CLF-C02 questions linked to AWS support plans.
AWS S3 practice questions
Practise CLF-C02 questions linked to AWS S3.
AWS EC2 practice questions
Practise CLF-C02 questions linked to AWS EC2.
Practice this exam
Start a free CLF-C02 practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
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: RI discounts are automatically shared across all member accounts in the organization — In AWS Organizations, Reserved Instance (RI) discounts are automatically shared across all accounts in the organization, provided the accounts are under the same consolidated billing family and the RIs are in the same AWS region. This means that if one member account purchases an RI, the hourly cost benefit can apply to qualifying usage from any other account in the organization, reducing the overall bill. The management account receives the consolidated bill and can see the aggregated savings, but no explicit sharing configuration is required.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.