Google Cloud Digital Leader Practice Exam

An organization wants to track and understand its expenses on Google Cloud and receive recommendations on cost optimizations. Which tool should the organization use?

1. Cloud Billing reports

2. Resource quotas and thresholds

3. Committed use discounts

4. Invoices

The correct answer is: Cloud Billing reports

Using Cloud Billing reports is the most effective way for an organization to track and understand its expenses on Google Cloud while receiving recommendations on cost optimizations. These reports provide detailed insights into spending patterns and help to analyze costs across various projects and resources. Additionally, the reporting features can identify areas where the organization can reduce costs, presenting opportunities for optimization based on usage trends. While resource quotas and thresholds manage resource allocation and control costs indirectly by preventing over-provisioning, they do not provide specific insights or recommendations regarding expenses. Committed use discounts are valuable for reducing costs over the long term by committing to use a certain amount of resources, but they don’t offer real-time visibility or analytical insights into ongoing expenses. Invoices provide a summary of charges after services have been rendered, but they do not offer tools for tracking spending in real-time or for deriving insights on potential savings. In summary, Cloud Billing reports are specifically designed for understanding expenses and optimizing costs, making them the ideal tool for organizations looking to manage their cloud spending effectively.