Which discount type reduces cloud storage costs as usage increases and may apply at region level since usage across regions isn't combined?

• A. Volume Discounts
• B. Time-Based Discount
• C. Usage-Based Discount
• D. Negotiated Rates

Answer: (A)

The concept being tested is how pricing can decrease per unit as you store more data, with discounts that can apply within a specific region. Volume discounts fit this idea because they use tiered pricing: the more storage you use, the lower the price per GB becomes. This structure directly rewards increasing usage. Additionally, discounts can be scoped to regions, meaning usage in one region is priced separately from usage in others, so the discount isn’t necessarily applied globally across all regions.

Time-based discounts focus on longer commitments or upfront payments rather than rising usage. Negotiated rates are custom, contract-based prices rather than automatic tiered reductions tied to volume. Usage-based discounts exist, but volume discounts specifically describe the tiered reductions that escalate with higher usage, which is why they’re the best match here.