Answer
SQL Server uses a cost-based optimizer that parses the query, evaluates different plan options, estimates CPU/I/O cost, and chooses the lowest-cost plan.
Quick Answer
SQL Server parses the query, generates a query tree, checks the plan cache (reuse if found), then the optimizer produces candidate plans with cost estimates. It picks the lowest-cost plan and caches it. For parameterized queries, that same plan runs for all future calls with different parameter values.
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SugharaIQ Editorial Team
Verified Answer
This answer has been peer-reviewed by industry experts holding senior engineering roles to ensure technical accuracy and relevance for modern interview standards.
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Source: SugharaIQ