PK0-005 Cost Performance Index (CPI) Practice Question

Network Topology

Given EV = $80,000 and AC = $90,000, what is the project's cost performance index (CPI) and what does it indicate?

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

✓

CPI = 0.89; the project is over budget

CPI = EV/AC = $80,000/$90,000 = 0.89. A CPI less than 1 indicates the project is over budget.

Answer analysis

For each option: why learners choose it and why it is or isn't the right answer here.

✗
CPI = 0.89; the project is under budget
Why it's wrong here
Incorrect. CPI of 0.89 indicates over budget, not under budget.
✗
CPI = 1.11; the project is under budget
Why it's wrong here
Incorrect. CPI of 1.11 is not supported by the exhibit; the actual CPI is 0.89.
✓
CPI = 0.89; the project is over budget
Why this is correct
Correct. CPI = 0.89, and CPI < 1 means project is over budget.
✗
CPI = 0.80; the project is over budget
Why it's wrong here
Incorrect. CPI of 0.80 is not supported by the exhibit; the actual CPI is 0.89.

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