AWS Billing and Cost Management – Certification

AWS Billing and Cost Management

  • AWS Billing and Cost Management is the service that you use to pay AWS bill, monitor your usage, and budget your costs

Analyzing Costs with Graphs

  • AWS provides Cost Explorer tool which allows filter graphs by API operations, Availability Zones, AWS service, custom cost allocation tags, EC2 instance type, purchase options, region, usage type, usage type groups, or, if Consolidated Billing used, by linked account.

Budgets

  • Budgets can be used to track AWS costs to see usage-to-date and current estimated charges from AWS
  • Budgets use the cost visualization provided by Cost Explorer to show the status of the budgets and to provide forecasts of your estimated costs.
  • Budgets can be used to create CloudWatch alarms that notify when you go over your budgeted amounts, or when the estimated costs exceed budgets
  • Notifications can be sent to an SNS topic and to email addresses associated with your budget notification

Cost Allocation Tags

  • Tags can be used to organize AWS resources, and cost allocation tags to track the AWS costs on a detailed level.
  • Upon cost allocation tags activation, AWS uses the cost allocation tags to organize the resource costs on the cost allocation report making it easier to categorize and track your AWS costs.
  • AWS provides two types of cost allocation tags,
    • an AWS-generated tag AWS defines, creates, and applies the AWS-generated tag for you,
    • and user-defined tags that you define, create,
  • Both types of tags must be activated separately before they can appear in Cost Explorer or on a cost allocation report

Alerts on Cost Limits

  • CloudWatch can be used to create billing alerts when the AWS costs exceed specified thresholds
  • When the usage exceeds threshold amounts, AWS sends an email notification

Consolidated Billing

Refer to My Blog Post about Consolidated Billing

AWS Certification Exam Practice Questions

  • Questions are collected from Internet and the answers are marked as per my knowledge and understanding (which might differ with yours).
  • AWS services are updated everyday and both the answers and questions might be outdated soon, so research accordingly.
  • AWS exam questions are not updated to keep up the pace with AWS updates, so even if the underlying feature has changed the question might not be updated
  • Open to further feedback, discussion and correction.
  1. An organization is using AWS since a few months. The finance team wants to visualize the pattern of AWS spending. Which of the below AWS tool will help for this requirement?
    • AWS Cost Manager
    • AWS Cost Explorer (Check Cost Explorer)
    • AWS CloudWatch
    • AWS Consolidated Billing (Will not help visualize)
  2. Your company wants to understand where cost is coming from in the company’s production AWS account. There are a number of applications and services running at any given time. Without expending too much initial development time, how best can you give the business a good understanding of which applications cost the most per month to operate?
    1. Create an automation script, which periodically creates AWS Support tickets requesting detailed intra-month information about your bill.
    2. Use custom CloudWatch Metrics in your system, and put a metric data point whenever cost is incurred.
    3. Use AWS Cost Allocation Tagging for all resources, which support it. Use the Cost Explorer to analyze costs throughout the month. (Refer link)
    4. Use the AWS Price API and constantly running resource inventory scripts to calculate total price based on multiplication of consumed resources over time.
  3. You need to know when you spend $1000 or more on AWS. What’s the easy way for you to see that notification?
    1. AWS CloudWatch Events tied to API calls, when certain thresholds are exceeded, publish to SNS.
    2. Scrape the billing page periodically and pump into Kinesis.
    3. AWS CloudWatch Metrics + Billing Alarm + Lambda event subscription. When a threshold is exceeded, email the manager.
    4. Scrape the billing page periodically and publish to SNS.
  4. A user is planning to use AWS services for his web application. If the user is trying to set up his own billing management system for AWS, how can he configure it?
    1. Set up programmatic billing access. Download and parse the bill as per the requirement
    2. It is not possible for the user to create his own billing management service with AWS
    3. Enable the AWS CloudWatch alarm which will provide APIs to download the alarm data
    4. Use AWS billing APIs to download the usage report of each service from the AWS billing console
  5. An organization is setting up programmatic billing access for their AWS account. Which of the below mentioned services is not required or enabled when the organization wants to use programmatic access?
    1. Programmatic access
    2. AWS bucket to hold the billing report
    3. AWS billing alerts
    4. Monthly Billing report
  6. A user has setup a billing alarm using CloudWatch for $200. The usage of AWS exceeded $200 after some days. The user wants to increase the limit from $200 to $400? What should the user do?
    1. Create a new alarm of $400 and link it with the first alarm
    2. It is not possible to modify the alarm once it has crossed the usage limit
    3. Update the alarm to set the limit at $400 instead of $200 (Refer link)
    4. Create a new alarm for the additional $200 amount
  7. A user is trying to configure the CloudWatch billing alarm. Which of the below mentioned steps should be performed by the user for the first time alarm creation in the AWS Account Management section?
    1. Enable Receiving Billing Reports
    2. Enable Receiving Billing Alerts
    3. Enable AWS billing utility
    4. Enable CloudWatch Billing Threshold

References

AWS_Billing_&_Cost_Management – User_Guide