Which fiscal approach helps organizations reduce costs by only incurring charges for the resources they actually utilize?

The pay-as-you-go model is a fiscal approach that enables organizations to incur expenses solely based on the actual resources they utilize. This method is particularly beneficial in cloud computing, where businesses can scale their services up or down in response to demand. By charging based on consumption, organizations can avoid unnecessary costs associated with maintaining unused resources or overprovisioning.

This model aligns with the dynamic nature of cloud environments, allowing companies to manage their budgets effectively by only paying for what they use during a specific time frame. This can lead to significant cost savings, especially for businesses with fluctuating workload demands.

Usage-based billing, while similar, can imply a more granular level of measurement and charge, such as by the hour or by the specific service used. However, the pay-as-you-go model is a broader term that encompasses this concept and is more widely recognized in cloud services as a fundamental element of cost management.