CPI and SPI Interpretation — Over Budget and Behind Schedule
A project is in the execution phase. The earned value analysis shows a Cost Performance Index (CPI) of 0.8 and a Schedule Performance Index (SPI) of 0.9. What is the best interpretation of these metrics?
⚠ Common exam trap
The trap is misreading the direction of the indices — candidates sometimes think CPI < 1 means under budget or SPI < 1 means ahead of schedule, but both below 1.0 are unfavorable.
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 is calculated as EV/AC, and SPI as EV/PV. A CPI of 0.8 means the project is earning only 80 cents of value for every dollar spent, indicating it is over budget. An SPI of 0.9 means the project is progressing at 90% of the planned schedule rate, indicating it is behind schedule. Therefore, the project is both 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 and behind schedule.
Why this is correct
A CPI below 1.0 means earned value is less than actual cost, so the project is spending more than planned and is over budget. An SPI below 1.0 means earned value lags planned value, so the project is behind schedule.
- ✗
The project is under budget but behind schedule.
Why it's wrong here
A CPI of 0.8 means costs exceed the value earned, so the project is over budget, not under. The option inverts the metric's meaning. Reading CPI as favourable is tempting when the figure is below 1.0, but only SPI below 1.0 indicates schedule slippage.
- ✗
The project is over budget but ahead of schedule.
Why it's wrong here
CPI of 0.8 confirms over budget, but SPI of 0.9 means less work was completed than planned, so the project is behind schedule, not ahead. An SPI above 1.0 would indicate being ahead of schedule.
- ✗
The project is under budget and ahead of schedule.
Why it's wrong here
A CPI of 0.8 means every unit of planned value costs more than one unit, so the project is over budget; an SPI of 0.9 means it is behind schedule. Both indices below 1.0 indicate unfavourable cost and schedule performance.
Go deeper
Related to this question
About these practice questions
Courseiva writes every CAPM question from scratch — 451 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
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
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.