Crucial Exams

GCP Professional Cloud Architect Practice Question

A media company is retiring the on-premises servers that power its 24×7 video-rendering farm and will run the workload on GPU-optimized Spot VMs in Google Cloud. Today the company buys servers outright and depreciates them over five years. In Google Cloud it will sign 1-year committed use discounts and pay the monthly bill from its operations budget. From a financial-management perspective, which statement best characterizes this change?

  • Committed use discounts reclassify cloud spending as capital expenditure, allowing the company to continue depreciating the costs over multiple years.

  • Because Spot VMs can be preempted, their fees are booked as capital leases, so the costs remain CapEx amortized over the expected interruptible lifetime.

  • Migrating to Google Cloud removes both CapEx and OpEx for compute because usage-based billing is offset by cloud provider tax credits.

  • Cloud consumption charges, even when reduced by committed use discounts, are treated as operating expenses, replacing up-front CapEx with variable OpEx and increasing cash-flow flexibility.

GCP Professional Cloud Architect
Analyzing and optimizing technical and business processes
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