Question 260 of 980
hardMultiple ChoiceObjective-mapped
Earned Value Interpretation: CPI and SPI
A project is in the monitoring and controlling phase. The project manager notices that the cost performance index (CPI) is 0.8 and the schedule performance index (SPI) is 1.2. What does this indicate about the project?
Quick Answer
The correct interpretation is that the project is over budget and ahead of schedule. This is determined by the earned value interpretation: a cost performance index (CPI) of 0.8, being less than 1.0, means the project is earning only 80 cents of value for every dollar spent, indicating a cost overrun; conversely, a schedule performance index (SPI) of 1.2, being greater than 1.0, means the project is completing 20% more work than planned, placing it ahead of schedule. On the CompTIA Project+ PK0-005 exam, this question tests your ability to apply earned value management (EVM) metrics during the monitoring and controlling phase, where a common trap is confusing the direction of the indices—remember that below 1 is bad for both cost and schedule, but here they move in opposite directions. A useful memory tip is to think of CPI as the "cost penalty" (lower is worse) and SPI as the "speed prize" (higher is better), so CPI < 1 hurts the budget while SPI > 1 helps the timeline.
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 Cost Performance Index (CPI) of 0.8 indicates that the project is over budget (CPI < 1 means actual costs exceed planned costs), while a Schedule Performance Index (SPI) of 1.2 indicates that the project is ahead of schedule (SPI > 1 means more work has been completed than planned). Option B is incorrect because it suggests the project is on budget and on schedule, which is not the case. Option C is incorrect because it states under budget and ahead of schedule, but the project is over budget. Option D is incorrect because it states behind schedule, but the SPI indicates ahead of schedule.
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 over budget and ahead of schedule
Why this is correct
CPI<1 over budget, SPI>1 ahead of schedule.
- ✗
The project is on budget and on schedule
Why it's wrong here
CPI and SPI not equal to 1.
- ✗
The project is under budget and ahead of schedule
Why it's wrong here
CPI <1 indicates over budget.
- ✗
The project is over budget and behind schedule
Why it's wrong here
SPI >1 indicates ahead of schedule.
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Same concept, more angles
1 more way this is tested on PK0-005
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. While monitoring and controlling, the project manager reviews earned value metrics and finds CPI = 0.8 and SPI = 1.1. What does this indicate?
medium- ✓ A.Over budget but ahead of schedule
- B.Under budget and ahead of schedule
- C.Under budget but behind schedule
- D.Over budget and behind schedule
Why A: CPI less than 1 indicates over budget; SPI greater than 1 indicates ahead of schedule. Therefore the project is over budget but ahead of schedule.
Last reviewed: Jun 24, 2026
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.
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