A company wants to transition from purchasing physical servers to paying a monthly fee based on their actual resource usage. Which financial model does this represent?

Answer options:

Capital Expenditure (CapEx)

Operational Expenditure (OpEx)

Fixed Cost Model

Sunk Cost

How to approach this question

Identify the financial term for pay-as-you-go, ongoing expenses.

Full Answer

B.Operational Expenditure (OpEx)✓ Correct

Operational Expenditure (OpEx) is an ongoing cost for running a product, business, or system. Cloud computing relies on an OpEx model where you pay for what you use (consumption-based).

Common mistakes

Choosing CapEx. Remember: CapEx = physical hardware upfront. OpEx = pay-as-you-go cloud services.

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Practice the full Azure Fundamentals AZ-900 Practice Exam 7

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A company wants to transition from purchasing physical servers to paying a monthly fee based on their actual resource usage. Which financial model does this represent?

How to approach this question

Full Answer

Common mistakes

Practice the full Azure Fundamentals AZ-900 Practice Exam 7

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