PK0-005 Project Life Cycle Practice Question
A project has earned value (EV) of $120,000, planned value (PV) of $100,000, and actual cost (AC) of $110,000. What is the cost performance index (CPI)?
⚠ Common exam trap
PK0-005 often tests the confusion between CPI (EV/AC) and SPI (EV/PV), tempting candidates to select 1.20, which is actually the SPI in this scenario.
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
✓
1.09
Cost Performance Index (CPI) is calculated as EV / AC. With EV = $120,000 and AC = $110,000, CPI = 120,000 / 110,000 ≈ 1.09. A CPI greater than 1.0 indicates the project is under budget — it is getting more value per dollar spent than planned.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
1.09
Why this is correct
With CPI calculated as EV divided by AC, $120,000 ÷ $110,000 gives 1.09, indicating the project is under budget for every dollar spent. This satisfies the stem's requirement to derive cost efficiency from the given earned value, planned value and actual cost figures.
- ✗
0.91
Why it's wrong here
CPI is EV/AC = 120,000/110,000 = 1.09, so 0.91 is incorrect. The figure 0.91 is tempting because it is AC divided by EV, the inverse ratio, which describes cost per unit of earned value rather than the standard index.
- ✗
1.10
Why it's wrong here
CPI is EV divided by AC, giving 120,000/110,000 ≈ 1.09, not 1.10. The figure 1.10 is tempting because it equals EV/PV, the schedule performance index, which measures schedule efficiency rather than cost efficiency — the calculation the question actually requests.
- ✗
1.20
Why it's wrong here
CPI is EV divided by AC, giving 120,000/110,000 = 1.09, not 1.20. The value 1.20 is tempting because it is EV divided by PV, which is the schedule performance index, the correct calculation when the question asks how efficiently schedule is being converted.
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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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