CAPM Predictive Plan-Based Methodologies Practice Question
A project manager is evaluating cost performance using earned value management (EVM). The project has a cost performance index (CPI) of 0.85 and a schedule performance index (SPI) of 0.90. Which conclusion is most appropriate?
⚠ Common exam trap
CAPM often tests the direction of the indices — candidates must remember that any index below 1.0 is unfavorable, and that CPI maps to cost while SPI maps to 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 and behind schedule.
CPI = EV/AC; a CPI of 0.85 means the project is earning only 85 cents of value per dollar spent — it is over budget. SPI = EV/PV; an SPI of 0.90 means the project is earning only 90 cents of value per planned dollar — it is behind schedule. Both indices below 1.0 therefore indicate the project is over budget and behind 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 but ahead of schedule.
Why it's wrong here
A CPI of 0.85 means every £1 spent delivers only £0.85 of earned value, so the project is over budget; the SPI of 0.90 confirms it is also behind schedule, not ahead. The option tempts by pairing one correct reading with an inverted one, catching candidates who assume a sub-1.0 SPI signals faster progress.
- ✗
The project is behind schedule but on budget.
Why it's wrong here
A CPI of 0.85 means costs exceed the earned value, so the project is over budget, not on budget; the SPI of 0.90 separately confirms it is behind schedule. It is tempting because a single index below one is often read as the only problem, but CPI and SPI measure independent cost and schedule dimensions.
- ✗
The project is under budget and ahead of schedule.
Why it's wrong here
A CPI below 1.0 means costs exceed the earned value, so the project is over budget, not under. An SPI below 1.0 also signals behind schedule. This option inverts both indices, which would only apply if CPI and SPI each exceeded 1.0.
- ✓
The project is over budget and behind schedule.
Why this is correct
Both indices fall below 1.0, so the project is spending more than planned and progressing slower than planned. CPI of 0.85 means only 85 pence of value is earned per pound spent, while SPI of 0.90 confirms schedule slippage. This directly satisfies the stem's requirement to conclude on cost and schedule status.
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Same concept, more angles
1 more way this is tested on CAPM
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. A project manager notices that the project's cost performance index (CPI) is 0.85. What does this indicate?
medium- A.The project is under budget
- B.The project is behind schedule
- C.The project is ahead of schedule
- ✓ D.The project is over budget
Why D: A CPI of 0.85 indicates that the project is over budget. CPI is calculated as Earned Value (EV) divided by Actual Cost (AC). A value less than 1.0 means that for every dollar spent, less than a dollar of value was earned, indicating cost overrun. Therefore, the project is over budget.
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PMI exam blueprint
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