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RAN-AZ900-00022
Ranvier · AZ900

Exam AZ900 Topics: cloud-concepts Difficulty: easy

An accountant is classifying the company's IT spending after its move to the cloud, using the CapEx/OpEx distinction from cloud budgeting. How is spending on cloud services classified, and why?

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  1. A. As capital expenditure, because cloud capacity is purchased up front like datacenter hardware
  2. B. As capital expenditure, because the provider buys the hardware and passes the cost on in monthly bills
  3. C. As operational expenditure, because you pay for cloud services as you consume them over time
  4. D. As operational expenditure, because you buy the servers and pay for them in monthly installments
Reveal answer

Correct answer: As operational expenditure, because you pay for cloud services as you consume them over time

Reference: https://learn.microsoft.com/en-us/training/modules/describe-cloud-compute/6-describe-consumption-based-model/

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Official Answer (C): As operational expenditure, because you pay for cloud services as you consume them over time

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