- A
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.
- B
The Savings Plan must be purchased separately in each account where the discount is needed.
Why wrong: 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.
- C
The finance team must create custom cost allocation tags to distribute the Savings Plan discount across accounts.
Why wrong: Cost allocation tags are used for tracking and categorizing costs, not for distributing or applying discount rates from Savings Plans.
- D
The Savings Plan must be linked to each member account using the AWS Billing Conductor.
Why wrong: 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.
Quick Answer
The answer is that the Savings Plan must be purchased in the management account, and the discount automatically applies to all accounts in the organization. This works because consolidated billing aggregates the eligible usage from every member account into a single, combined pool, and the Savings Plan discount is then applied to that total usage across EC2, Fargate, and Lambda, regardless of which specific account incurred the cost. On the AWS Certified Cloud Practitioner CLF-C02 exam, this concept tests your understanding of how AWS Organizations and consolidated billing centralize cost management—a common trap is thinking you need to purchase separate Savings Plans for each account or enable a special sharing feature. Remember the key principle: the management account is the single source of truth for discounts, and sharing is automatic, not optional. A useful memory tip is “One Plan, One Payer, All Beneficiaries”—the management account pays, and every member account benefits without extra configuration.
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 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
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.
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.
- ✓
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
This configuration is correct. With consolidated billing, Savings Plans purchased in the management account cover eligible usage across all member accounts automatically.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
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.
- ✗
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 used for tracking and categorizing costs, not for distributing or applying discount rates from Savings Plans.
- ✗
The Savings Plan must be linked to each member account using the AWS Billing Conductor.
Why it's wrong here
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 traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may 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.
Detailed technical explanation
How to think about this question
Under the hood, AWS Organizations with consolidated billing creates a single paying account (the management account) that aggregates all usage from member accounts. Savings Plans are applied at the organizational level by default when purchased in the management account, using the aggregated usage to maximize discount coverage. A real-world scenario is a company with dev, test, and prod accounts; a single Compute Savings Plan in the management account covers EC2, Fargate, and Lambda usage across all three accounts, reducing overall costs without needing separate plans.
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.
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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: 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.
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
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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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