Match each cost management concept to its description.
Drag a concept onto its matching description — or click a concept then click the description.
Prepaid compute for discounted rate
Cheap compute with possible termination
Adjust resources based on demand
Label resources for cost allocation
Upfront purchase vs operational expense
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Total Cost of Ownership (TCO): Total cost including purchase, operation, and disposal
TCO is lifecycle cost, Pay-as-you-go is usage-based billing, Reserved Instances offer discounts for prepayment, and Cost Allocation tracks departmental spending. Common confusions include mixing TCO with Pay-as-you-go and Pay-as-you-go with Reserved Instances.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Total Cost of Ownership (TCO): Total cost including purchase, operation, and disposal
Why this is correct
TCO encompasses all costs associated with an asset over its lifecycle.
Pay-as-you-go: Pay only for what you use
Why this is correct
Pay-as-you-go is a consumption-based model where charges accrue by usage.
Reserved Instances: Pre-pay for discounted rate
Why this is correct
Reserved Instances involve upfront commitment for a lower hourly cost.
Cost Allocation: Distributing costs to different departments
Why this is correct
Cost allocation assigns shared costs to business units for accountability.
Total Cost of Ownership (TCO): Pay only for what you use
Why it's wrong here
Incorrect — this describes Pay-as-you-go, not TCO.
Pay-as-you-go: Pre-pay for discounted rate
Why it's wrong here
Incorrect — this describes Reserved Instances, not Pay-as-you-go.
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