AWS Certified Cloud Practitioner (CLF-C02)Billing, Pricing, and SupportHard
A holding company uses AWS Organizations with consolidated billing across two member accounts using Amazon S3 Standard storage, priced at $0.023/GB for the first 50,000 GB and $0.022/GB for the next tier. Account A stores 30,000 GB and Account B stores 40,000 GB in the same Region. How much does consolidated billing save compared to billing each account separately?
- A$20
- B$1,590
- C$200
- D$0
Show answer & explanationAnswer & explanation
Correct answer: A. $20
Billed separately: Account A pays 30,000 × $0.023 = $690; Account B pays 40,000 × $0.023 = $920 (both under the 50,000GB tier), totaling $1,610. Combined under consolidated billing, total usage is 70,000GB: 50,000 × $0.023 = $1,150 plus 20,000 × $0.022 = $440, totaling $1,590. The savings is $1,610 − $1,590 = $20.
Why the other options are wrong
- B. $1,590 is the combined bill total, not the savings amount.
- C. This is not the correct arithmetic result of the tiered calculation.
- D. Incorrect — consolidated billing does produce a small savings here from tiered pricing.
Consolidated Billing Volume Discounts
AWS Organizations consolidated billing aggregates usage across accounts, letting combined usage reach lower-priced volume tiers faster.
- Applies to services like S3 with tiered pricing
- Master/management account receives one combined bill
- Savings arise because usage tiers are combined across accounts
Memory trick: Combine usage, hit cheaper tiers sooner