CAPM Practice Question: Project Management Fundamentals and Core Concepts
A project manager is assigned to a project that is in execution phase. The project has a cost performance index (CPI) of 0.8 and a schedule performance index (SPI) of 1.1. Which of the following best describes the current status of the project?
⚠ Common exam trap
Watch out — candidates often confuse the direction of the indices, incorrectly assuming a CPI less than 1 means under budget or an SPI greater than 1 means behind schedule, when in fact CPI < 1 indicates over budget and SPI > 1 indicates ahead of schedule.
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 but ahead of schedule.
A CPI of 0.8 means the project is earning only $0.80 for every $1.00 spent, indicating it is over budget. An SPI of 1.1 means the project is earning $1.10 for every $1.00 of planned work, indicating it is ahead of schedule. Therefore, the project is over budget but ahead of schedule, making option C correct.
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 < 1 means over budget, not under.
- ✗
The project is under budget and behind schedule.
Why it's wrong here
Both indices are opposite of this statement.
- ✓
The project is over budget but ahead of schedule.
Why this is correct
CPI=0.8 (<1) indicates cost overrun; SPI=1.1 (>1) indicates ahead of schedule.
- ✗
The project is over budget and behind schedule.
Why it's wrong here
SPI > 1 means ahead of schedule, not behind.
Go deeper
Related to this question
About these practice questions
One of 487 original CAPM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.