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Project Management Fundamentals and Core ConceptsmediumMultiple ChoiceObjective-mapped

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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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.