CAPM Predictive Plan-Based Methodologies Practice Question
A project manager notices that the project's cost performance index (CPI) is 0.85. What does this indicate?
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
CPI < 1 indicates that the project is over budget, as the value earned is less than the cost incurred.
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
Why it's wrong here
Under budget would be CPI > 1.
- ✗
The project is behind schedule
Why it's wrong here
Schedule performance is measured by SPI, not CPI.
- ✗
The project is ahead of schedule
Why it's wrong here
CPI measures cost efficiency, not schedule.
- ✓
The project is over budget
Why this is correct
Correct: CPI less than 1 means cost overrun.
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