Quick Answer
The answer is that the project is over budget. A negative cost variance of -$5,000 means the actual cost exceeds the earned value by that amount, while a cost performance index of 0.9 confirms that for every dollar spent, only $0.90 of work is being earned—both metrics clearly indicate a cost overrun. On the CompTIA Project+ PK0-005 exam, interpreting cost variance and cost performance index together tests your ability to read project health from earned value management data; a common trap is confusing a negative CV with being behind schedule, but remember CV and CPI only measure cost efficiency, not time. A positive CV or CPI above 1.0 means under budget, while negative or below 1.0 means over budget. Memory tip: think of CPI as a “cents-per-dollar” gauge—if you’re only getting 90 cents back for every dollar spent, you’re losing money.
This PK0-005 practice question tests your understanding of project management concepts. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project manager calculates the cost variance (CV) as -$5,000 and the cost performance index (CPI) as 0.9. What does this indicate about the project?
The project is under budget and behind schedule
Why wrong: CV is negative, so not under budget; there is no schedule information.
The project is over budget
Negative CV and CPI<1 both indicate the project is over budget.
The project is ahead of schedule
Why wrong: CV and CPI measure cost, not schedule.
The project is under budget
Why wrong: A negative CV indicates over budget, not under.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
The project is over budget
A negative cost variance (CV) of -$5,000 means the project has spent $5,000 more than the value of work performed, indicating a cost overrun. A cost performance index (CPI) of 0.9 confirms that for every dollar spent, only $0.90 of earned value is being received, which is a clear sign of being over budget. Therefore, the project is over budget, making option B correct.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
The project is under budget and behind schedule
Why it's wrong here
CV is negative, so not under budget; there is no schedule information.
The project is over budget
Why this is correct
Negative CV and CPI<1 both indicate the project is over budget.
Related concept
Read the scenario before looking for a memorised answer.
The project is ahead of schedule
Why it's wrong here
CV and CPI measure cost, not schedule.
The project is under budget
Why it's wrong here
A negative CV indicates over budget, not under.
Common exam traps
The trap here is that candidates confuse cost performance metrics (CV, CPI) with schedule performance metrics (SV, SPI), leading them to incorrectly infer schedule status from cost data alone.
Detailed technical explanation
Earned Value Management (EVM) uses CV = EV - AC and CPI = EV / AC; a negative CV and CPI < 1.0 both signal cost overruns. In practice, a CPI of 0.9 means the project is 10% less efficient in cost than planned, which could trigger corrective actions like re-estimating costs or reducing scope. Real-world scenarios often require combining CPI with TCPI (To-Complete Performance Index) to forecast the efficiency needed for remaining work to stay within budget.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PK0-005 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Project Management Concepts — This question tests Project Management Concepts — Read the scenario before looking for a memorised answer..
The correct answer is: The project is over budget — A negative cost variance (CV) of -$5,000 means the project has spent $5,000 more than the value of work performed, indicating a cost overrun. A cost performance index (CPI) of 0.9 confirms that for every dollar spent, only $0.90 of earned value is being received, which is a clear sign of being over budget. Therefore, the project is over budget, making option B correct.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.
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