hardMultiple Choice
PK0-005 Practice Question: A project manager is reviewing a project that has…
A project manager is reviewing a project that has a cost performance index (CPI) of 0.8 and a schedule performance index (SPI) of 1.1. What is the best interpretation?
⚠ Common exam trap
The trap here is that candidates often misinterpret CPI and SPI values, confusing values below 1.0 as 'good' or failing to recognize that a CPI of 0.8 clearly indicates cost overrun regardless of the SPI value.
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
✓
The project is over budget and ahead of schedule
A CPI of 0.8 means the project is earning only $0.80 for every $1.00 spent, indicating cost overrun (over budget). An SPI of 1.1 means the project is earning $1.10 for every $1.00 of planned work, indicating progress ahead of schedule. Therefore, the project is over budget and ahead of schedule, making option B correct.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The project is on budget and on schedule
Why it's wrong here
CPI of 0.8 is below 1.0, meaning cost overrun, and SPI of 1.1 is above 1.0, meaning ahead of schedule, so neither half of this interpretation matches. It tempts because CPI and SPI of exactly 1.0 would indicate on-budget, on-schedule performance, which is the scenario this answer would fit.
- ✓
The project is over budget and ahead of schedule
Why this is correct
A CPI of 0.8 means every unit of planned value costs 1.25 units, so the project is over budget. An SPI of 1.1 means earned value exceeds planned value, so work is ahead of schedule.
- ✗
The project is over budget and behind schedule
Why it's wrong here
SPI of 1.1 means the project is ahead of schedule, not behind it, so the schedule half of this interpretation is wrong. Only the cost half holds: CPI below 1.0 does indicate over-budget spending. It tempts because CPI 0.8 correctly signals overspend, but pairing it with a schedule slip misreads the SPI value.
- ✗
The project is under budget and ahead of schedule
Why it's wrong here
A CPI of 0.8 means costs exceed the earned value, so the project is over budget; SPI of 1.1 shows it is ahead of schedule. Under budget and ahead is the reading when CPI exceeds 1.0 while SPI also exceeds 1.0.
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