CAPM Practice Question: Project Management Fundamentals and Core Concepts
A project is in the monitoring and controlling phase. The project manager calculates the cost performance index (CPI) as 0.8 and the schedule performance index (SPI) as 1.0. The project budget is $500,000, and the actual costs to date are $200,000. The project is behind schedule? Actually SPI=1.0 means on schedule. But the question: What does this indicate about the project performance?
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 on schedule but over budget
CPI < 1 indicates the project is over budget relative to work performed. SPI = 1 indicates the project is on schedule. Therefore, the project is on schedule but over budget, which corresponds to option C. Option A is incorrect because CPI < 1 means over budget, not under. Option B is incorrect because SPI = 1 means on schedule, not behind. Option D is incorrect because CPI < 1 means over budget, not under.
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 under budget and ahead of schedule
Why it's wrong here
CPI below 1 means over budget, not under.
- ✗
The project is both over budget and behind schedule
Why it's wrong here
SPI is 1.0, so schedule is on track.
- ✓
The project is on schedule but over budget
Why this is correct
SPI=1 means on schedule; CPI=0.8 means over budget (cost performance is 80% of planned).
- ✗
The project is behind schedule but under budget
Why it's wrong here
SPI=1 indicates on schedule, not behind.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.