Cloud Digital Leader How Google Cloud Resources Are Managed Practice Question

Answer analysis

Option-by-option breakdown

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

• ✗

  CUDs provide a discount for sustained usage without any upfront commitment.

  Why it's wrong here

  This statement describes sustained use discounts (SUDs), which apply automatically as your monthly usage crosses thresholds. Committed use discounts (CUDs) require you to sign a contractual commitment for a fixed term, so they are not without an upfront commitment—you must agree to pay for a specific amount of a resource for 1 or 3 years. SUDs are automatic and usage-based, whereas CUDs are proactive commitments made before or during usage.

• ✓

  CUDs can be purchased for specific resources such as vCPUs and memory.

  Why this is correct

  CUDs are purchased at the resource level, meaning you commit to a specific quantity of a particular resource type, such as virtual CPUs (vCPUs), memory (GB), or GPUs, within a given region or machine family. This allows you to receive a discounted rate for all matching usage that falls within the committed amount. For example, you might commit to 100 vCPUs in us-central1 for 3 years and pay a reduced hourly rate for those vCPUs, regardless of which compatible VM uses them.

• ✗

  CUDs can be applied to any Google Cloud service automatically.

  Why it's wrong here

  CUDs are not a blanket discount for every Google Cloud service; they are only available for select services such as Compute Engine, Cloud SQL, Google Kubernetes Engine (GKE) when using Compute Engine VMs, and a few others. If a service is not covered by a CUD, its usage will be billed at standard on-demand rates even if you have an active commitment elsewhere. The scope of applicability is defined by the resource category and service, not automatically extended to the entire cloud bill.

• ✗

  CUDs are applied automatically without any action from the user.

  Why it's wrong here

  CUDs are never applied automatically; they require an explicit purchase action in the Google Cloud console, API, or via a partner. A user must select the resource type, quantity, region, and term length, and then agree to the contractual obligation. Once the commitment is active, the discount is applied to matching usage, but the initial setup is a manual decision, unlike sustained use discounts which are applied automatically based on monthly usage.

• ✓

  CUDs require a 1-year or 3-year commitment.

  Why this is correct

  A core characteristic of CUDs is that they are contractually bound to a fixed term of either 1 year or 3 years. This long-term commitment is what unlocks the deep discount, often up to 70% for Compute Engine and up to 55% for Cloud SQL, depending on the term and payment option (upfront or monthly). Exiting a CUD early is not possible; you are still responsible for the entire committed amount.

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