Which description matches Usage based Metered Billing?

Which description matches Usage based Metered Billing?

• A. They buy credits upfront
• B. Customers register and use during the period, then are billed for usage after period ends
• C. Customers pay upfront after each use
• D. They receive a fixed invoice regardless of usage

Answer: (B)

Usage-based metered billing charges customers based on what they actually consume during a billing period. The customer signs up and uses the service within that period, and the final invoice is issued after the period ends for the total usage collected. This ties the cost directly to real usage rather than a fixed fee or per-action charges. Upfront credits would mean prepaying, paying after each use is immediate per-use billing, and a fixed invoice ignores how much was actually used.

Usage-based metered billing charges customers based on what they actually consume during a billing period. The customer signs up and uses the service within that period, and the final invoice is issued after the period ends for the total usage collected. This ties the cost directly to real usage rather than a fixed fee or per-action charges. Upfront credits would mean prepaying, paying after each use is immediate per-use billing, and a fixed invoice ignores how much was actually used.