Describe Microsoft 365 pricing, licensing, and support →hardMultiple Choice

MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support

Exhibit

{
  "exhibit": "The following is a snippet from a Microsoft 365 admin center report:\\nProduct: Microsoft 365 Business Premium\\nAssigned licenses: 150\\nActive users: 120\\nUnused licenses: 30\\n"
}

Refer to the exhibit. The administrator wants to reduce costs by reclaiming unused licenses. However, they must ensure that no user loses access to services. What should they do?

⚠ Common exam trap

Candidates often confuse 'reclaiming unused licenses' with 'reassigning licenses' or use an overly short inactivity period (30 days), failing to recognize that Microsoft 365 requires a longer, more conservative threshold to avoid disrupting users who are temporarily inactive.

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

✓

Identify users with no activity for 90 days and remove their licenses

The administrator should identify users with no activity for 90 days and then remove their licenses. This approach directly reclaims unused licenses while ensuring that only truly inactive users lose access, minimizing the risk of disrupting active users. Microsoft 365 provides usage reports (e.g., in the Microsoft 365 admin center) that can show sign-in activity over the last 30, 60, or 90 days, allowing precise identification of dormant accounts.

Answer analysis

Option-by-option breakdown

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

✗
Purchase fewer licenses next month to offset the unused count
Why it's wrong here
Reducing next month's license count does not lower the current billing period already incurred; Microsoft 365 subscriptions are prepaid per seat, so the unused licenses remain billable through the end of the current term. It also ignores the immediate need to reclaim seats and may violate true-up obligations if your agreement is on a commit model.
✓
Identify users with no activity for 90 days and remove their licenses
Why this is correct
A 90-day inactivity threshold is a reliable, commonly used indicator that a license is genuinely unused. Using Microsoft Entra ID sign-in logs or Microsoft 365 usage reports, you can identify accounts with no logon or service activity for that window, then unassign and remove those licenses to immediately reduce the bill while preserving the seats for reallocation.
✗
Remove licenses from 30 users who have not logged in for 30 days
Why it's wrong here
30 days is too short to confirm an account is abandoned; legitimate users on parental leave, seasonal schedules, or project reassignments can exceed 30 days without signing in. Removing these licenses prematurely can interrupt business operations and force urgent re-licensing, which is why Microsoft-focused cost optimization guidance typically evaluates a much longer inactivity window, such as 90 days.
✗
Reassign the 30 unused licenses to new users
Why it's wrong here
Reassigning the seats to new users keeps the same license count and the same monthly cost, so the over-licensing problem remains. It may improve license utilization operationally, but it does not reduce spending; to actually lower costs, you must decrease the number of billed licenses by unassigning and not renewing them.

Go deeper

MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question