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SOA-C02 Cost and Performance Optimization Practice Question

A company wants to receive alerts when their monthly AWS spending exceeds $1,000. Which AWS service should be used?

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

✓

AWS Budgets

AWS Budgets allows setting cost thresholds and alerts. CloudWatch alarms are for metrics, not budgets. Cost Explorer is for visualization. Trusted Advisor provides recommendations.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    AWS Trusted Advisor

    Why it's wrong here

    AWS Trusted Advisor is an advisory service that evaluates your account against best practices across cost optimization, security, fault tolerance, and performance, presenting a list of actionable recommendations. While it includes cost optimization checks such as idle resources or reserved instance usage, it does not generate proactive alerts based on monthly spending thresholds or forecasted overages. Because the requirement is to be alerted when the monthly AWS spend crosses a defined limit, Trusted Advisor lacks the native alerting mechanism needed for this scenario.

  • ✗

    AWS CloudWatch

    Why it's wrong here

    AWS CloudWatch primarily monitors operational and performance metrics like CPU utilization, disk I/O, and custom application logs. Although CloudWatch can publish a monthly estimated billing metric and trigger an alarm on it, this approach is limited to the overall account charge and does not provide the per-service budget tracking, forecasting, or multi-threshold notifications available with AWS Budgets. Relying on CloudWatch for cost alerts would also require you to manually configure a single global alarm rather than leveraging budget-based anomaly detection and SNS integrations.

  • ✓

    AWS Budgets

    Why this is correct

    AWS Budgets is the purpose-built service for tracking spending and usage against predefined cost thresholds, allowing you to create budgets for monthly, quarterly, or annual periods. You can set multiple alerts—both for actual spend and forecasted spend—with custom thresholds and notification preferences (email, SNS) or even Lambda triggers. This directly satisfies the requirement to receive alerts when the monthly AWS spend exceeds a specific amount, making AWS Budgets the correct answer.

  • ✗

    AWS Cost Explorer

    Why it's wrong here

    AWS Cost Explorer is a visual analytics tool that helps you explore and understand your historical AWS cost and usage data by breaking it down across services, linked accounts, or tags. It offers rich reporting and filtering, but it is fundamentally a retrospective analysis interface—it does not actively monitor ongoing spend or push alert notifications when your month-to-date costs cross a threshold. Without a built-in alerting capability, Cost Explorer cannot meet the proactive alerting requirement.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This SOA-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 SOA-C02 exam.