PK0-005 Project Life Cycle Practice Question
A project manager is evaluating the cost performance of a project. Which TWO earned value metrics should be used to determine if the project is over budget?
⚠ Common exam trap
PK0-005 often tests whether candidates confuse schedule metrics (SV, SPI) with cost metrics (CV, CPI) — the acronyms look similar and the question's 'over budget' phrasing is the key discriminator.
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
✓
Cost variance (CV)
Cost variance (CV), option D, is the correct metric because it is calculated as EV minus AC and directly shows whether the project is over or under budget: a negative CV means the project is over budget. Cost performance index (CPI), option E, is also correct because it is calculated as EV divided by AC, and a CPI below 1.0 indicates the project is getting less value per dollar spent, i.e., over budget. By contrast, schedule variance (SV, option A) and schedule performance index (SPI, option C) measure schedule performance in terms of earned value versus planned value, not cost overruns. Estimate at completion (EAC, option B) forecasts the total expected cost at completion but does not by itself determine whether the project is currently 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.
- ✗
Schedule variance (SV)
Why it's wrong here
SV compares earned value against planned value, so it indicates schedule slippage, not cost overrun. A negative SV means behind schedule regardless of spending. Cost overrun requires CV or CPI. SV would be correct when assessing whether work is ahead of or behind the schedule baseline.
- ✗
Estimate at completion (EAC)
Why it's wrong here
EAC is a forecast of total project cost at completion, derived from current performance; it projects the final figure rather than directly indicating whether spending is currently over budget. CV and CPI give that current over-budget signal. EAC suits forecasting funding needs and revised budgets.
- ✗
Schedule performance index (SPI)
Why it's wrong here
SPI measures schedule efficiency against planned value, not cost overrun; a project can be behind schedule while under budget. Cost performance is assessed through cost variance and CPI. SPI would be the correct metric when determining whether the project is ahead of or behind its schedule baseline.
- ✓
Cost variance (CV)
Why this is correct
CV subtracts actual cost from earned value; a negative result means costs exceed the value earned, so the project is over budget. It gives the over-budget condition as an absolute currency amount, complementing CPI's ratio-based view of the same cost performance.
- ✓
Cost performance index (CPI)
Why this is correct
CPI divides earned value by actual cost; a value below 1.0 indicates the project is receiving less value per unit spent than planned, confirming it is over budget. It expresses cost efficiency as a ratio, directly satisfying the stem's over-budget determination.
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Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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.