- A
Assign Microsoft 365 Business Premium to all 300 users
Why wrong: Business Premium includes Intune, but it is more expensive than Business Basic plus add-ons for only 50 users.
- B
Purchase Microsoft Intune Plan 1 add-on licenses for the 50 users who need device management
Add-ons can be assigned to a subset of users, providing Intune only for those who need it, at the lowest cost.
- C
Create a separate Microsoft 365 Business Basic tenant for the 50 users and include Intune
Why wrong: This adds administrative complexity and still requires Intune licenses; it is not more cost-effective than add-ons.
- D
Purchase Microsoft 365 E3 licenses for the 50 users
Why wrong: E3 includes Intune but is significantly more expensive per user than a Business Basic plus Intune add-on.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing and support. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 non-profit organization with 300 users needs to deploy Microsoft 365 Business Basic for all users. They also require device management via Microsoft Intune for 50 users who use company-owned mobile devices. The organization is eligible for non-profit pricing. What is the most cost-effective licensing approach?
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
Purchase Microsoft Intune Plan 1 add-on licenses for the 50 users who need device management
Microsoft 365 Business Basic provides the core productivity and collaboration tools (Exchange Online, Teams, SharePoint) needed by all 300 users. For the 50 users requiring device management, purchasing Microsoft Intune Plan 1 as an add-on license is the most cost-effective approach because it adds mobile device management (MDM) capabilities to their existing Business Basic subscription without upgrading the entire tenant or purchasing more expensive suites. Non-profit pricing applies to both the base license and the add-on, minimizing costs.
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.
- ✗
Assign Microsoft 365 Business Premium to all 300 users
Why it's wrong here
Business Premium includes Intune, but it is more expensive than Business Basic plus add-ons for only 50 users.
- ✓
Purchase Microsoft Intune Plan 1 add-on licenses for the 50 users who need device management
Why this is correct
Add-ons can be assigned to a subset of users, providing Intune only for those who need it, at the lowest cost.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a separate Microsoft 365 Business Basic tenant for the 50 users and include Intune
Why it's wrong here
This adds administrative complexity and still requires Intune licenses; it is not more cost-effective than add-ons.
- ✗
Purchase Microsoft 365 E3 licenses for the 50 users
Why it's wrong here
E3 includes Intune but is significantly more expensive per user than a Business Basic plus Intune add-on.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume device management requires an entire suite upgrade (e.g., Business Premium or E3) rather than recognizing that Intune Plan 1 can be purchased as a cost-effective standalone add-on for specific users, leveraging the existing base license.
Detailed technical explanation
How to think about this question
Microsoft Intune Plan 1 can be licensed as a standalone add-on to any Microsoft 365 subscription (including Business Basic) via the 'User Subscription License' (USL) model, where each user needs both a qualifying base license and an Intune license. Intune uses MDM protocol (based on OMA-DM) to enforce policies like device compliance, conditional access, and remote wipe on company-owned mobile devices. In a real-world scenario, the 50 users would have their Business Basic license supplemented with Intune Plan 1, enabling them to enroll their devices in Intune while the remaining 250 users remain unmanaged, optimizing cost without sacrificing functionality.
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 startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Purchase Microsoft Intune Plan 1 add-on licenses for the 50 users who need device management — Microsoft 365 Business Basic provides the core productivity and collaboration tools (Exchange Online, Teams, SharePoint) needed by all 300 users. For the 50 users requiring device management, purchasing Microsoft Intune Plan 1 as an add-on license is the most cost-effective approach because it adds mobile device management (MDM) capabilities to their existing Business Basic subscription without upgrading the entire tenant or purchasing more expensive suites. Non-profit pricing applies to both the base license and the add-on, minimizing costs.
What should I do if I get this MS-900 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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Last reviewed: Jun 11, 2026
This MS-900 practice question is part of Courseiva's free Microsoft 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 MS-900 exam.
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