An Application Requires a Development Environment (DEV) and Production Environment

question 24

Multiple Choice

An application requires a development environment (DEV) and production environment (PROD) for several years. The DEV instances will run for 10 hours each day during normal business hours, while the PROD instances will run 24 hours each day. A solutions architect needs to determine a compute instance purchase strategy to minimize costs. Which solution is the MOST cost-effective?

• A) DEV with Spot Instances and PROD with On-Demand Instances
• B) DEV with On-Demand Instances and PROD with Spot Instances
• C) DEV with Scheduled Reserved Instances and PROD with Reserved Instances
• D) DEV with On-Demand Instances and PROD with Scheduled Reserved Instances

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Definitions:

Net Operating Income

The profit generated from a business's normal core operations, excluding deductions of interest and taxes.

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Unit Product Cost

Unit product cost is the total expense incurred to produce, assemble, and prepare a single unit for sale, encompassing both direct costs and allocated overheads.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing costs in the cost of a product, used for external reporting.