A solutions architect is creating an application that will handle batch processing of large amounts of data. The input data will be held in Amazon S3 and the output data will be stored in a…

An Auto Scaling group manages instance capacity and availability but does not inherently reduce data transfer costs between instances or to/from S3.

While placing instances in the same AWS Region is better than different regions, data transfer between Availability Zones *within* the same Region still incurs costs.

Placing all EC2 instances in the same Availability Zone minimizes data transfer costs because data transfer between instances within the same Availability Zone is generally free of charge, as is data transfer between EC2 instances and S3 buckets in the same region and AZ.

Placing instances in multiple Availability Zones would incur data transfer costs between those instances, which contradicts the goal of reducing overall data transfer costs.