Match each Microsoft 365 pricing model to its description.
Drag a concept onto its matching description — or click a concept then click the description.
Each user requires a license; most common model
License assigned to a device, not a user
Additional feature purchased on top of a base plan
Single service subscription, e.g., Exchange Online Plan 1
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Per-user subscription: Each user has a unique license to access services from any device.
Microsoft 365 offers different pricing models: per-user (each user licensed), per-device (each device licensed), and consumption-based (pay per use). Common confusions include swapping per-user and per-device, or confusing consumption with subscriptions.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Per-user subscription: Each user has a unique license to access services from any device.
Why this is correct
A per-user subscription assigns a unique license to each identity in the tenant, granting that individual the right to install and access Microsoft 365 apps and services from any device they sign into. The license is bound to the user object in Microsoft Entra ID, not to a specific machine, so a user can move between a desktop, laptop, tablet, or phone without additional licenses. This model is the most common M365 licensing model and also includes identity-based security and compliance features tied to the user.
Per-device subscription: Each device is licensed, allowing any user to access services on that device.
Why this is correct
A per-device subscription installs a license directly on the device itself, typically on a shared or kiosk computer, so any user who signs in to that device can run the licensed M365 apps without needing their own license. This is used for shift-worker or shared-workspace scenarios, where the organization assigns one license per physical machine rather than per employee. The license is tied to the device's hardware ID, not to a Windows account or user identity.
Consumption-based pricing: Charges are based on actual usage, such as data consumed or minutes used.
Why this is correct
Consumption-based pricing charges an amount that directly reflects measured resource usage, such as gigabytes of data transferred, compute hours, or minutes of service consumed, rather than a fixed monthly fee. In the Microsoft ecosystem this model is the foundation of Azure pay-as-you-go, but it also appears in Microsoft 365 add-ons like Microsoft Teams Communications Credits or PSTN usage metered per minute. Because costs scale with usage, it aligns spending with actual business activity instead of a flat per-user fee.
Per-user subscription: Licensing is tied to a specific device rather than a user.
Why it's wrong here
This statement is incorrect because per-user pricing is fundamentally identity-based: the license is assigned to a user, not to a specific device, and it grants that user access from any endpoint. The description actually matches a per-device model, where license entitlement is attached to the hardware and covers anyone who uses that machine. Per-user licenses allow a user to sign in on many devices, while per-device licenses cover one machine regardless of who is signed in.
Per-device subscription: Each user must have their own license regardless of device.
Why it's wrong here
This is the reverse of how per-device licensing works. A per-device license is attached to the machine and covers any user who signs into that machine, so it is specifically designed for shared-workstation scenarios where multiple users do not each need their own license. The situation described, where every user must have a license no matter what device they use, is actually per-user licensing, which follows the individual's identity rather than a physical device.
Consumption-based pricing: A fixed monthly fee per user for unlimited usage.
Why it's wrong here
This answer is incorrect because a fixed monthly fee per user is the definition of a per-user subscription, not consumption-based pricing. The whole point of consumption-based pricing is that usage is measured and billed only when the customer uses it, such as per minute for calling plans or per gigabyte for storage. There is no 'unlimited usage' concept in a metered billing model, since the charge is always proportional to the actual quantity consumed.
Go deeper
Learn chapter
Intune Device Compliance and Configuration Policies
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
About these practice questions
Courseiva writes every MS-900 question from scratch — 794 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.