Practice Test

True/False: AWS Budgets allows you to set custom cost and usage budgets that alert you when your costs or usage exceed (or are forecasted to exceed) your budget amount.

  • True
  • False

Answer: True

Explanation: AWS Budgets provides you with the ability to set custom budgets that alert you when your costs or usage exceed your budgeted amount. You can also track your AWS usage and costs.

True/False: AWS Budgets cannot be used to set reserved instance (RI) utilization or coverage targets.

  • True
  • False

Answer: False

Explanation: AWS Budgets can be used to set Reserved Instance (RI) utilization or coverage targets and receive alerts when usage falls below the threshold that you define.

Which AWS service can you use to set billing alarms?

  • a. AWS Budgets
  • b. Amazon CloudWatch
  • c. AWS Cost Explorer
  • d. None of the above

Answer: b. Amazon CloudWatch

Explanation: Billing alarms to monitor your AWS usage can be set up via Amazon CloudWatch, a monitoring service for AWS resources and applications.

What is the purpose of AWS Cost Explorer?

  • a. To set billing alarms
  • b. To monitor resource usage
  • c. To visualize, handle, and understand costs
  • d. To monitor security groups

Answer: c. To visualize, handle, and understand costs

Explanation: AWS Cost Explorer is a tool that enables users to view and analyze their costs and usage over a designated time period.

True/False: With AWS Budgets, you can’t create daily, monthly, and quarterly budgets

  • True
  • False

Answer: False

Explanation: AWS Budgets allows you to set custom cost and usage budgets at daily, monthly, or quarterly levels.

Can you configure AWS Budgets to send notifications to an Amazon Simple Notification Service (SNS) topic?

  • a. Yes
  • b. No

Answer: a. Yes

Explanation: AWS Budgets can send alert notifications via email or to an Amazon SNS topic when your usage or costs exceed the thresholds you’ve defined.

True/False: You are not able to use AWS Cost Explorer to forecast future costs.

  • True
  • False

Answer: False

Explanation: AWS Cost Explorer includes a forecasting feature that you can use to predict your future costs based on your historical cost data.

What AWS service automatically matches your usage with your purchased RIs?

  • a. AWS Cost Explorer
  • b. AWS Budgets
  • c. AWS Cost and Usage Report
  • d. None of the above

Answer: d. None of the above

Explanation: AWS automatically applies your purchased Reserved Instances (RIs) to matching instance usage within the same AWS account.

True/False: AWS billing alarms let you know when your AWS charges exceed a threshold you define.

  • True
  • False

Answer: True

Explanation: You can create a billing alarm to receive notifications when your charges exceed a threshold that you define.

AWS Budgets support which types of cost filters?

  • a. Service
  • b. Linked account
  • c. Region
  • d. All of the above

Answer: d. All of the above

Explanation: AWS Budgets supports cost filters such as service, linked account, region, tags and more. This allows for more granular control and understanding of your AWS costs.

True/False: Cost allocation tags can help you organize and categorize your AWS resources for cost tracking purposes.

  • True
  • False

Answer: True

Explanation: Cost allocation tags can be used to organize your AWS resources by different categories (such as cost centers, application names, or owners) to better understand costs associated with your AWS resources.

Which service would you use to track infrastructure metrics for billing purposes?

  • a. AWS CloudTrail
  • b. AWS CloudWatch
  • c. AWS Billing and Cost Management
  • d. AWS Trusted Advisor

Answer: b. AWS CloudWatch

Explanation: Amazon CloudWatch can be used to collect and track metrics, collect and monitor log files, set alarms, and automatically react to changes in your AWS resources.

True/False: AWS Budgets can only be configured via AWS Management Console.

  • True
  • False

Answer: False

Explanation: AWS Budgets can be configured via AWS Management Console, AWS Budgets API, or AWS CLI.

AWS Cost Explorer allows you to analyze data at which granularities?

  • a. Daily
  • b. Monthly
  • c. Both

Answer: c. Both

Explanation: AWS Cost Explorer enables you to analyze your costs and usage at both a high level (e.g., total costs and usage across all accounts) and for highly-specific requests (e.g., m2xlarge costs and usage in the current region split by linked account for the current month).

True/False: Amazon SNS is a requirement for setting up AWS Billing alarms.

  • True
  • False

Answer: False

Explanation: Amazon SNS is not a requirement for setting up AWS Billing alarms. You can create a billing alarm to send an email to notify when your usage exceeds a threshold you set. However, SNS can be used if you want to send notifications to a topic.

Interview Questions

What is the primary purpose of AWS Budgets?

AWS Budgets primarily provides tools for you to create customized budget models and see how your cost and usage progress toward those budgets.

Is it possible to link your AWS Budgets to your AWS Cost Explorer?

Yes, it is possible to link AWS Budgets to AWS Cost Explorer for enhanced visibility and cost management capabilities.

Can AWS Budgets be used to set custom cost and usage budget thresholds?

Yes, AWS Budgets can be used to set custom cost and usage budget thresholds which will notify you by email when the predetermined threshold has been reached.

How are you notified when a budget you set in AWS Budgets has been breached?

If a budget has been breached, AWS Budgets sends an email notification to all email accounts that you configure to receive AWS Budgets Alerts.

What is AWS billing alarms?

AWS billing alarms are cost alarms that you set up to monitor your AWS charges and it notify you when your usage exceeds the threshold you define on Amazon CloudWatch.

Are there any additional charges for configuring AWS Billing Alarms?

No. AWS does not charge you any additional amounts for configuring AWS Billing Alarms.

What AWS tool can you use to set a billing alarm for estimated AWS charges?

You can use Amazon CloudWatch to set a billing alarm for estimated AWS charges.

What is the first step of creating a billing alarm on Amazon CloudWatch?

The first step is to enable receiving billing alerts in the Billing and Cost Management console.

How frequently does AWS publish metrics to CloudWatch for billing alarms?

AWS publishes metrics to CloudWatch for billing alarms several times daily, not in real-time.

What type of AWS users can set up billing alerts?

The AWS account owners and the users with associated permission can set up billing alerts.

Can billing data in AWS Budgets be filtered by services, accounts, and tags?

Yes, you can apply cost filters in AWS Budgets by services, accounts, and tags for a closer analysis of your budget.

What happens if you exceed the limit on the number of free alarms in Amazon CloudWatch?

If you exceed the limit on the number of free alarms, standard CloudWatch charges apply.

What do AWS Budgets ‘Cost’ and ‘Usage’ budgets measure respectively?

‘Cost’ budgets allow you to track costs and ‘Usage’ budgets allow you to track the usage on AWS resources.

Can you control AWS services spending with AWS Budgets?

No, AWS Budgets does not control AWS services spending. It only monitors the usage and sends notifications on the basis of your budget.

Is it possible to reset or change a billing alarm?

Yes, you can modify or delete a billing alarm at any time from the Amazon CloudWatch console.

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