PK0-005 Tools and Documentation Practice Question
A project has a budget at completion (BAC) of $500,000. After 3 months, the earned value (EV) is $200,000, the actual cost (AC) is $250,000, and the planned value (PV) is $180,000. What is the cost performance index (CPI) and what does it indicate?
⚠ Common exam trap
PK0-005 often tests the confusion between CPI (cost) and SPI (schedule), causing candidates to interpret a low CPI as a schedule delay rather than a cost overrun.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
CPI = 0.8, over budget
CPI is calculated as EV / AC = $200,000 / $250,000 = 0.8. A CPI less than 1.0 indicates that the project is over budget, because the value earned is less than the cost incurred. Therefore, CPI = 0.8, over budget is correct.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
CPI = 0.8, over budget
Why this is correct
CPI is calculated as EV ÷ AC, giving $200,000 ÷ $250,000 = 0.8. A value below 1.0 means each dollar spent delivers only 80 cents of earned value, so the project is over budget. This directly satisfies the stem's request for both the CPI figure and its cost implication.
- ✗
CPI = 1.11, under budget
Why it's wrong here
CPI is EV divided by AC, giving 200,000/250,000 = 0.80, indicating cost overrun. Dividing EV by PV yields the schedule index, and 1.11 would only arise from inverting the ratio, so the stated figure and its under-budget conclusion are both wrong.
- ✗
CPI = 0.8, behind schedule
Why it's wrong here
CPI is EV divided by AC, giving 200,000/250,000 = 0.8, yet 0.8 indicates cost overrun, not schedule slippage; schedule status comes from SPI (EV/PV = 1.11). It tempts because CPI below 1.0 is often loosely described as 'behind', conflating cost and schedule indices.
- ✗
CPI = 1.25, over budget
Why it's wrong here
CPI is EV/AC = 200,000/250,000 = 0.8, not 1.25; 1.25 is AC/EV inverted, and a CPI below 1.0 signals over budget, not the stated value. It tempts because inverting the ratio produces a familiar-looking number.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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