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Difficulty: EasyConsolidated Billing and AWS Organizations

A gaming studio manages separate AWS accounts for its development, staging, and production environments. The finance team wants to simplify cost management and reduce expenses across all accounts. Which two advantages does consolidated billing within AWS Organizations offer for this scenario? (Select TWO.)

  1. A single payment method is used to pay for all AWS accounts in the organization.Answer
  2. Volume pricing discounts can be shared by combining the usage of all linked accounts.Answer
  3. C
    Service Control Policies (SCPs) are automatically created to set strict budget limits on monthly spending.
  4. D
    The root user credentials of the management account are automatically shared with all member accounts to simplify admin access.
  5. E
    AWS takes over the customer's responsibility for securing data stored in member accounts.

Answer

Consolidated billing provides a single payment method for all AWS accounts in the organization, and it allows linked accounts to share volume pricing discounts by combining their usage.
Consolidated billing offers two key advantages: it aggregates all account charges into a single monthly bill paid via a single payment method from the management account, and it combines the usage of all member accounts, allowing the organization to benefit from volume discounts.

Step-by-Step Solution

1
Identify the primary financial and pricing benefits of consolidated billing in AWS Organizations.
The primary benefits are centralizing payments (one bill/payment method) and combining resource usage to qualify for tiered volume pricing discounts.
Consolidated billing is designed to simplify payments and reduce costs through aggregation.
2
Evaluate the distractors against AWS Organizations capabilities and general cloud concepts.
Service Control Policies govern permissions rather than billing; sharing root credentials violates best practices; and data security remains a customer responsibility under the Shared Responsibility Model.
This confirms that only the options related to consolidated invoicing and combined volume usage are correct.

Key Concept

Consolidated billing simplifies payment administration and lowers costs by combining the usage of all accounts in an organization to qualify for volume discounts.
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Consolidated Billing and AWS Organizations

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