The answer is the Compute Instance Admin (v1) role, specifically roles/compute.instanceAdmin.v1. This is the minimal IAM role that allows creating a Compute Engine VM because it includes the critical compute.instances.create permission, along with other permissions needed to configure attached resources like disks and networks. The Compute Engine Default service account, which the team lead mentioned, only provides read-only access to metadata and basic monitoring—it lacks the write permissions required for instance creation, which is why the gcloud command fails with 'insufficient permissions'. On the Google Associate Cloud Engineer exam, this scenario tests your understanding of the principle of least privilege and the hierarchy of Compute Engine roles; a common trap is assuming the broader Compute Admin role is minimal, but that includes extra permissions like managing firewalls and images. For a memory tip, remember that "Instance Admin v1" is the "create and run" role—if you need to spin up a VM, think "v1 for one instance."
Google ACE Setting up a cloud solution environment Practice Question
This ACE practice question tests your understanding of setting up a cloud solution environment. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 team needs to create a Compute Engine VM but the `gcloud compute instances create` command is failing with 'insufficient permissions'. The team lead says the service account has the Compute Engine Default role. What is the minimal IAM role that allows creating VM instances?
Why wrong: Compute Viewer is read-only — it allows viewing instance configurations but not creating them.
B
Compute Instance Admin (v1)
Compute Instance Admin (v1) grants permissions to create, modify, start, stop, and delete Compute Engine instances — the minimum role needed for VM creation.
C
Compute Network Admin
Why wrong: Compute Network Admin manages networking resources (VPCs, firewall rules, routes) — it doesn't include permissions to create VM instances.
D
Project Editor
Why wrong: Project Editor works, but it's broader than necessary — the principle of least privilege recommends Compute Instance Admin for this specific need.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Compute Instance Admin (v1)
The Compute Instance Admin (v1) role (roles/compute.instanceAdmin.v1) provides the necessary permissions to create, modify, and delete Compute Engine VM instances. The Compute Engine Default service account lacks the required permissions for instance creation, and this role is the minimal predefined IAM role that includes compute.instances.create.
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.
✗
Compute Viewer
Why it's wrong here
Compute Viewer is read-only — it allows viewing instance configurations but not creating them.
✓
Compute Instance Admin (v1)
Why this is correct
Compute Instance Admin (v1) grants permissions to create, modify, start, stop, and delete Compute Engine instances — the minimum role needed for VM creation.
Related concept
Read the scenario before looking for a memorised answer.
✗
Compute Network Admin
Why it's wrong here
Compute Network Admin manages networking resources (VPCs, firewall rules, routes) — it doesn't include permissions to create VM instances.
✗
Project Editor
Why it's wrong here
Project Editor works, but it's broader than necessary — the principle of least privilege recommends Compute Instance Admin for this specific need.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Google Cloud often tests the distinction between predefined roles and basic roles, and the trap here is that candidates may choose Project Editor because it 'can do everything,' overlooking the requirement for the minimal role that specifically allows VM creation without extraneous permissions.
Detailed technical explanation
How to think about this question
Under the hood, the compute.instances.create permission is required to call the instances.insert API method, which triggers the VM provisioning workflow including disk, network, and metadata configuration. The Compute Instance Admin (v1) role also includes permissions for attaching/detaching disks and managing instance metadata, but notably does not include network administration or project-level billing modifications, ensuring least privilege. In real-world scenarios, using this role prevents accidental deletion of shared VPC networks or firewall rules while still allowing developers to spin up instances.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this ACE question in full detail.
Setting up a cloud solution environment — This question tests Setting up a cloud solution environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Compute Instance Admin (v1) — The Compute Instance Admin (v1) role (roles/compute.instanceAdmin.v1) provides the necessary permissions to create, modify, and delete Compute Engine VM instances. The Compute Engine Default service account lacks the required permissions for instance creation, and this role is the minimal predefined IAM role that includes compute.instances.create.
What should I do if I get this ACE 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.
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Question Discussion
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