mediumMultiple Choice
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?
⚠ Common exam trap
The trap is inverting the CPI formula (AC/EV instead of EV/AC) or misreading the threshold — candidates who compute 1.11 or who think CPI < 1 means under budget will pick the wrong option.
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 is calculated as EV / AC = $80,000 / $90,000 ≈ 0.89. A CPI less than 1.0 means the project is spending more than the value earned, so it is over budget. The correct answer pairs the 0.89 value with the over-budget interpretation.
Answer analysis
Option-by-option breakdown
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
The 0.89 CPI is calculated correctly, but a value below 1.0 means cost overrun, not under budget; $90,000 spent against $80,000 earned is overspending. It is tempting because the numeric ratio is right, so only the interpretation needs correcting.
- ✗
CPI = 1.11; the project is under budget
Why it's wrong here
CPI is EV divided by AC, giving 80,000 ÷ 90,000 = 0.89, not 1.11; the arithmetic inverts the ratio. It is tempting because dividing AC by EV does yield 1.11, but that figure describes nothing meaningful and the under-budget conclusion is also wrong.
- ✓
CPI = 0.89; the project is over budget
Why this is correct
Dividing earned value by actual cost ($80,000 ÷ $90,000) yields a CPI of 0.89. Any CPI below 1.0 signals that each dollar spent returns less than a dollar of earned value, satisfying the stem's over-budget constraint: the project has spent more than the work completed is worth.
- ✗
CPI = 0.80; the project is over budget
Why it's wrong here
The arithmetic 80,000/90,000 yields 0.89, not 0.80; 0.80 would require AC of 100,000. It is tempting because the sub-1 index correctly signals overspend, but the stated value misreports the magnitude, so the numeric answer itself is wrong.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
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.