Which statement is true?
Correct. CPI=120/130=0.92, SPI=120/150=0.80.
Why this answer
Option B is correct because both the Cost Performance Index (CPI) of 0.92 and the Schedule Performance Index (SPI) of 0.80 are less than 1.0, indicating the project is over budget and behind schedule. A CPI below 1 means the project is earning less value for each dollar spent (cost overrun), while an SPI below 1 means the project is progressing slower than planned (schedule delay). This is the only option where both indices are under 1.0, which is a common realistic scenario in troubled projects.
Exam trap
The trap here is that candidates often confuse the direction of the indices—thinking a value above 1 is always bad—or they fail to recognize that only option B presents a consistent scenario where both cost and schedule performance are unfavorable, which is the most common exam context for EVM interpretation.
How to eliminate wrong answers
Option A is wrong because a CPI of 1.08 (greater than 1) indicates the project is under budget, which contradicts the typical scenario where both cost and schedule are unfavorable; also, the SPI of 0.8 alone would be correct for schedule, but the CPI is not consistent with a project that is over budget. Option C is wrong because an SPI of 1.2 (greater than 1) indicates the project is ahead of schedule, which is inconsistent with the typical troubled project scenario where both indices are below 1; the CPI of 0.92 is correct for cost overrun, but the SPI is not. Option D is wrong because both CPI of 1.08 and SPI of 1.2 are greater than 1, indicating the project is under budget and ahead of schedule, which is the opposite of the typical scenario where both are unfavorable; this represents a best-case scenario, not the common reality tested in PK0-005.