AWS Certified Cloud Practitioner (CLF-C02)Billing, Pricing, and SupportHard

A company wants AWS to automatically apply an IAM policy that restricts EC2 launches once a defined monthly budget threshold is exceeded, without manual intervention. Which AWS Budgets feature enables this automated response?

  1. ABudget reports
  2. BBudget actions
  3. CBudget alerts
  4. DCost anomaly detection
Show answer & explanation

Correct answer: B. Budget actions

AWS Budgets Actions allow you to define automated or approval-based responses—such as applying an IAM or SCP policy, or stopping/terminating EC2 or RDS instances—when a budget threshold is exceeded. Budget alerts only send notifications and do not take direct action on resources.

Why the other options are wrong

  • A. Budget reports are scheduled summaries sent via email, not automated actions.
  • C. Budget alerts notify stakeholders but do not enforce policy changes automatically.
  • D. Cost anomaly detection identifies unusual spending patterns but does not apply restrictive policies.

AWS Budgets Actions

A feature of AWS Budgets that triggers automated or approval-based actions, such as applying IAM policies or stopping instances, when budget thresholds are exceeded.

  • Can apply IAM or SCP policies automatically
  • Can stop or terminate EC2/RDS instances
  • Actions can require manual approval or run automatically

Memory trick: Budgets alert, Actions act

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