COF-C03 Data Collaboration 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.

• ✗

  The consumer, who is billed directly by Snowflake via a credit card registered to the Reader Account.

  Why it's wrong here

  Consumers using a Reader Account do not have a direct billing relationship with Snowflake. They do not register payment methods or receive invoices. The provider who created the account acts as the host and is the entity that Snowflake bills for all activity occurring within that specific managed environment, simplifying the consumer experience.

• ✗

  Snowflake, as part of the free tier benefits for new data consumers.

  Why it's wrong here

  Snowflake does not provide free compute for Reader Accounts as part of a standard service. All compute resources used in Snowflake must be paid for with credits. In the case of Reader Accounts, these credits are deducted from the provider's balance, as the account is essentially an extension of the provider's own organization.

• ✓

  The provider, who is billed for all virtual warehouse usage within the Reader Account.

  Why this is correct

  Reader accounts are managed by the provider, who is responsible for all credit consumption generated by the consumer's activity. The provider can set up resource monitors to control and limit the amount of credits the Reader Account can use. This ensures the provider can share data without facing unexpected or unmanaged costs.

• ✗

  The cost is split equally between the provider and the consumer at the end of each billing cycle.

  Why it's wrong here

  There is no automated split-billing mechanism for Reader Accounts within Snowflake. All charges flow directly to the provider's account. If the provider wishes to recoup costs from the consumer, they must handle that via a separate legal or financial agreement outside of the Snowflake platform, as Snowflake only bills the owner.