CAPM Practice Question: Project Management Fundamentals and Core Concepts
A project manager is leading a project to develop a new mobile application. The project sponsor asks for a status update and wants to know the current project schedule performance. The project manager calculates that the Schedule Performance Index (SPI) is 0.85 and the Cost Performance Index (CPI) is 1.10. What is the most accurate interpretation of these metrics?
⚠ Common exam trap
Many exam-takers confuse the meaning of SPI and CPI values, particularly thinking that a CPI greater than 1.0 means over budget.
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 behind schedule and under budget.
The Schedule Performance Index (SPI) measures schedule efficiency; a value less than 1.0 means the project is behind schedule. The Cost Performance Index (CPI) measures cost efficiency; a value greater than 1.0 means the project is under budget. Therefore, an SPI of 0.85 and CPI of 1.10 indicate the project is behind schedule but under budget.
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 ahead of schedule and over budget.
Why it's wrong here
An SPI less than 1.0 indicates poor schedule performance, not ahead of schedule. A CPI greater than 1.0 indicates good cost performance, not over budget. Therefore, this interpretation is incorrect because it reverses the meaning of both indices.
- ✗
The project is ahead of schedule and under budget.
Why it's wrong here
An SPI of 0.85 shows the project is behind schedule, not ahead. A CPI of 1.10 shows it is under budget, so the cost part is correct. However, the schedule part is incorrect, making this option wrong overall.
- ✓
The project is behind schedule and under budget.
Why this is correct
An SPI of 0.85 indicates that the project is only achieving 85% of the planned schedule performance, meaning it is behind schedule. A CPI of 1.10 indicates that the project is getting $1.10 of work for every $1 spent, so it is under budget. This combination is correctly interpreted as behind schedule and under budget.
- ✗
The project is behind schedule and over budget.
Why it's wrong here
While the project is behind schedule (SPI < 1.0), it is not over budget. A CPI of 1.10 means the project is under budget. Over budget would be indicated by a CPI less than 1.0. Thus, this option is partially correct but fails on the cost aspect.
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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
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.