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?
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.
A CPI of 0.85 indicates that for every dollar spent, only $0.85 of value is earned, meaning the project is over budget (cost overrun). An SPI of 0.90 indicates that the project is progressing at 90% of the planned rate, meaning it is behind schedule. Therefore, option D is correct: the project is over budget and behind schedule. Options A, B, and C are incorrect because they contradict these EVM interpretations.
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
SPI < 1 means behind schedule, not ahead.
- ✗
The project is behind schedule but on budget.
Why it's wrong here
CPI of 0.85 indicates cost overrun, not on budget.
- ✗
The project is under budget and ahead of schedule.
Why it's wrong here
Values less than 1 indicate the opposite.
- ✓
The project is over budget and behind schedule.
Why this is correct
CPI < 1 and SPI < 1 indicate both over budget and behind schedule.
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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: CPI < 1 indicates that the project is over budget, as the value earned is less than the cost incurred.
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.