PK0-005 Project Life Cycle Practice Question
A project has an EV of $40,000, PV of $50,000, and AC of $45,000. What is the cost performance index (CPI)?
⚠ Common exam trap
PK0-005 often tests the confusion between CPI and SPI formulas, as well as the inversion of EV and AC, so candidates must memorize that CPI = EV / AC and SPI = EV / PV.
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
✓
0.89
The cost performance index (CPI) is calculated as EV / AC. With EV = $40,000 and AC = $45,000, CPI = 40,000 / 45,000 = 0.888..., which rounds to 0.89. A CPI less than 1 indicates the project is over budget for the work completed.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
1.25
Why it's wrong here
CPI is EV divided by AC, giving 40,000 ÷ 45,000 ≈ 0.89. Dividing EV by PV instead yields the schedule performance index, and 50,000 ÷ 40,000 gives 1.25 — the SPI, not the CPI. That ratio is tempting when a question asks about schedule efficiency rather than cost.
- ✗
0.80
Why it's wrong here
CPI is EV divided by AC, giving 40,000/45,000 = 0.89, not 0.80. The value 0.80 arises from dividing EV by PV (40,000/50,000), which is the schedule performance index, so it is tempting when the two indices are confused.
- ✓
0.89
Why this is correct
Dividing earned value by actual cost ($40,000 ÷ $45,000) yields 0.89, satisfying the stem's request for the cost performance index. A CPI below 1.0 signals the project is over budget for the work completed, since each dollar spent returns only 89 cents of earned value.
- ✗
1.11
Why it's wrong here
CPI is EV divided by AC, giving 40,000 ÷ 45,000 ≈ 0.89, which is below 1 and signals cost overrun. The value 1.11 comes from dividing AC by EV, inverting the formula. That inversion is tempting when assessing how many dollars were spent per dollar earned, but it is not CPI.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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