PK0-005 Project Life Cycle Practice Question
A project has an Earned Value (EV) of $50,000, Planned Value (PV) of $60,000, and Actual Cost (AC) of $55,000. What is the cost performance index (CPI) and what does it indicate?
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 = 0.91; project is over budget
CPI = EV/AC = 50000/55000 ≈ 0.91. A CPI less than 1 indicates the project is over budget.
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 = 1.10; project is on budget
Why it's wrong here
Incorrect.
- ✗
CPI = 1.09; project is under budget
Why it's wrong here
Incorrect calculation.
- ✗
CPI = 0.83; project is over budget
Why it's wrong here
Incorrect calculation.
- ✓
CPI = 0.91; project is over budget
Why this is correct
Correct: CPI < 1 means over budget.
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