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Google ACE Practice Question: A startup builds a serverless REST API using…
A startup builds a serverless REST API using Cloud Functions (2nd gen). Each function invocation runs for 200ms on average, processes 5 million requests per day, and uses 256 MB memory. Approximately how should they estimate monthly Cloud Functions costs?
⚠ Common exam trap
Test-takers frequently assume the free tier covers all usage because they underestimate the cumulative effect of high invocation counts and compute time, or they mistakenly think Cloud Functions pricing is similar to VM pricing or a flat per-function fee.
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
✓
Estimate based on invocation count, compute time (memory × duration), and networking costs beyond the free tier
Cloud Functions (2nd gen) pricing is based on three components: invocation count, compute time (measured in GB-seconds, which is memory multiplied by duration), and networking egress beyond the free tier. With 5 million requests per day at 200ms each and 256 MB memory, the monthly compute time is approximately 5,000,000 × 0.2 seconds × (256/1024) GB = 250,000 GB-seconds per day, or 7.5 million GB-seconds per month, which far exceeds the free tier of 400,000 GB-seconds per month, so costs will accrue. Additionally, the 150 million invocations per month exceed the free tier of 2 million invocations, and egress traffic will also incur charges beyond the 1 GB free tier.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Approximately $0 — all invocations fall within the free tier
Why it's wrong here
This is incorrect because the free tier is far too small to cover the stated workload. The free tier includes 2 million invocations and 400,000 GB-seconds per month, but this scenario has 150 million invocations—75 times the free limit—and 7.5M GB-seconds, which is more than 18 times the free compute allowance. Every invocation and GB-second beyond those thresholds is billed, so the total cost will be well above zero. Even with free egress, the invocation and compute-time overages alone would generate a significant bill.
- ✓
Estimate based on invocation count, compute time (memory × duration), and networking costs beyond the free tier
Why this is correct
Cloud Functions billing is consumption-based, charging for three dimensions: the number of invocations, compute time measured in GB-seconds (memory in GB multiplied by execution duration in seconds), and outbound network egress. The monthly free tier (2M invocations, 400K GB-seconds, and 5 GB network egress) is subtracted before per-unit rates apply. With 150M invocations and 7.5M GB-seconds, you would estimate cost by calculating usage above the free tier for each dimension and multiplying by the applicable regional price, making this the only correct approach.
- ✗
Approximately the same as a continuously-running e2-medium VM — Cloud Functions and VMs are priced equivalently
Why it's wrong here
Cloud Functions do not have an hourly price; they are billed per invocation and per GB-second of compute time, while a continuously-running e2-medium VM charges a flat hourly rate regardless of utilization. These pricing models are fundamentally different and cannot be considered equivalent. A serverless function might be cheaper for low, spiky traffic or far more expensive for sustained high throughput like 150M invocations, depending on memory allocated and duration. A VM's cost is predictable and includes always-on capacity, but the per-execution charges of Cloud Functions make any equivalence false.
- ✗
Fixed monthly rate based on the number of deployed functions, not invocation count
Why it's wrong here
Cloud Functions pricing is strictly usage-based and does not include any fixed monthly fee per deployed function. You are charged only for invocations, compute time (GB-seconds), and outbound network traffic; a function that is never called costs nothing beyond minimal source-code storage in some cases. This consumption model means the bill scales directly with actual execution activity, not with the number of function definitions in your project. Therefore, a fixed monthly rate based on deployed function count is an incorrect description of the pricing mechanism.
Quick reference
Cloud Service Model Comparison
| Model | You Manage | Provider Manages | Examples |
|---|---|---|---|
| IaaS | OS, runtime, apps, data | Hardware, hypervisor, networking | EC2, Azure VMs, GCP Compute Engine |
| PaaS | Apps and data | OS, runtime, middleware, hardware | Elastic Beanstalk, Azure App Service |
| SaaS | Data and settings only | Everything else | Microsoft 365, Salesforce, Workday |
| FaaS / Serverless | Function code only | Infra, scaling, runtime | Lambda, Azure Functions, Cloud Run |
| CaaS | Containers and apps | Kubernetes, OS, hardware | EKS, AKS, GKE |
Go deeper
Related to this question
Learn chapter
Google Cloud Platform Overview
Key term
Serverless
Serverless is a cloud computing model where the cloud provider manages the servers, and you only pay for the actual compute time your code uses, without having to worry about provisioning or maintaining infrastructure.
Key term
Cloud Functions
Cloud Functions are serverless compute services that let you run single-purpose code in response to events without managing servers.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This ACE practice question is part of Courseiva's free Google Cloud 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 ACE exam.