Quick Answer
The answer is the Cost Performance Index (CPI). This KPI directly measures budget efficiency by comparing the earned value (EV) of the work completed to the actual cost (AC) incurred, with a CPI above 1 indicating the project is under budget and below 1 signaling overspending. On the CompTIA Project+ PK0-005 exam, this question tests your ability to distinguish CPI from other metrics like SPI (schedule efficiency) or TCPI (to-complete performance), often appearing in scenario-based questions during the execution phase. A common trap is confusing CPI with cost variance (CV), but remember that CPI is a ratio, not a dollar amount, making it better for comparing efficiency across projects of different sizes. For a quick memory tip, think “CPI = Cost Performance Index = Cost Perfection Indicator” — if it’s above 1, you’re perfectly under budget.
This PK0-005 practice question tests your understanding of tools and documentation. Examine the command output carefully: the correct answer depends on what the output actually shows, not on general recall alone. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project manager is preparing a status report for stakeholders. The project is currently in the execution phase. Which key performance indicator should be included to show how efficiently the project is using its budget?
BAC
Why wrong: BAC is the total budget, not a performance index.
EAC
Why wrong: EAC is an estimate of final costs, not a measure of current efficiency.
SPI
Why wrong: SPI measures schedule efficiency, not cost.
CPI
CPI = EV/AC, indicates budget efficiency.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
CPI
The Cost Performance Index (CPI) is the correct KPI because it directly measures cost efficiency by comparing the earned value (EV) to the actual cost (AC). A CPI greater than 1 indicates the project is under budget, while a CPI less than 1 indicates over budget. This aligns with the question's focus on how efficiently the budget is being used during the execution phase.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
BAC
Why it's wrong here
BAC is the total budget, not a performance index.
EAC
Why it's wrong here
EAC is an estimate of final costs, not a measure of current efficiency.
SPI
Why it's wrong here
SPI measures schedule efficiency, not cost.
CPI
Why this is correct
CPI = EV/AC, indicates budget efficiency.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
CompTIA often tests the distinction between CPI (cost efficiency) and SPI (schedule efficiency), and candidates may confuse SPI as a measure of budget performance because both are performance indices.
Detailed technical explanation
CPI is calculated as EV / AC, where EV is the budgeted cost of work performed and AC is the actual cost incurred. In earned value management (EVM), CPI values below 1.0 signal a cost overrun, while values above 1.0 signal under-budget performance. A real-world scenario: if a project has an EV of $50,000 and an AC of $60,000, the CPI is 0.83, indicating the project is getting only $0.83 of work for every dollar spent.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PK0-005 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
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FAQ
Tools and Documentation — This question tests Tools and Documentation — Read the scenario before looking for a memorised answer..
The correct answer is: CPI — The Cost Performance Index (CPI) is the correct KPI because it directly measures cost efficiency by comparing the earned value (EV) to the actual cost (AC). A CPI greater than 1 indicates the project is under budget, while a CPI less than 1 indicates over budget. This aligns with the question's focus on how efficiently the budget is being used during the execution phase.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 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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