S3 Cost Calculation for Basant & Josiah

Total S3 Cost for Management Account

Question

Basant & Josiah are transferring 8 TB & 4 TB of data into S3 in a month respectively.

Basant's AWS account is the Management account who's consolidated bill includes Basant's own Account & Josiah's Account.

How much of the total S3 cost will the Management account be charged for both accounts? (Given below are the charges for S3) Price per TB (first 10 TB) = 0.17 * 1024 = $174.08 Price per TB (Next 40 TB) = 0.13 * 1024 = $133.12

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

Correct Answer: C.

While using AWS consolidated billing, all the Accounts considered for billing are treated as a Single Account.

The consolidated billing will appear in the Management Account (Basant's here)

Consolidated billing provides the advantage of having volume discounts which is provided by combined usage from all Accounts by AWS.

It determines which volume pricing tier to apply providing a less overall price whenever possible.

The calculations for arriving at the final result are as follows.

Price per TB (first 10 TB) = 0.17 * 1024 = $174.08

Price per TB (Next 40 TB) = 0.13 * 1024 = $133.12

Basant's Management account will be charged with 174.08 * 10 + 133.12 * 2 = $2007.04

If the billing were to be done separately for both Basant & Josiah, $174.08 will be applied to both accounts and the resulting charges will be $2088.96 (option B).

Option A is incorrect since this will be only Basant's Account charges.

Option B is incorrect since this will be the charges without using consolidated billing.

Option C is CORRECT since volume discounts are applied to the entire 12 TB of data transfer ($0.17 for the first 10TB & $0.13 for the last 2TB) due to use of a single billing Account.

Option D is incorrect since this will be Josiah's Account charges.

Diagram:

Reference:

https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/consolidated-billing.html
March 17
Payer Account $ 39.52
Engineering $ 119.92
Sciences $ 35.04
Liberal Arts $ 15.28
Charged to payer $ 209.76

To calculate the total cost for both Basant's and Josiah's accounts, we need to first calculate the total amount of data being transferred to S3.

Basant is transferring 8 TB of data in a month, and Josiah is transferring 4 TB of data in a month. Therefore, the total amount of data being transferred in a month is 8 TB + 4 TB = 12 TB.

Now that we know the total amount of data being transferred, we can calculate the total cost based on the pricing tiers for S3.

For the first 10 TB, the price is $174.08 per TB. Since we are transferring 12 TB of data, the first 10 TB will be charged at this rate, and the remaining 2 TB will be charged at the next pricing tier.

So the cost for the first 10 TB is:

10 TB * $174.08/TB = $1,740.80

For the remaining 2 TB, the price is $133.12 per TB. So the cost for the remaining 2 TB is:

2 TB * $133.12/TB = $266.24

Adding the costs for the first 10 TB and the remaining 2 TB, we get:

$1,740.80 + $266.24 = $2,007.04

Therefore, the total S3 cost that the Management account will be charged for both Basant's and Josiah's accounts is $2,007.04.

The correct answer is C. 174.08 * 10 + 133.12 * 2.