CAPM Practice Question: Project Management Fundamentals and Core Concepts
In earned value management, if the Cost Performance Index (CPI) is 0.8 and the Schedule Performance Index (SPI) is 1.2, 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 and ahead of schedule.
A Cost Performance Index (CPI) of 0.8 is less than 1, indicating that the project is over budget (earned value is less than actual cost). A Schedule Performance Index (SPI) of 1.2 is greater than 1, indicating that the project is ahead of schedule (earned value exceeds planned value). Therefore, the project is over budget and ahead of schedule, which corresponds to option C.
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 it's wrong here
SPI>1 indicates ahead of schedule.
- ✗
The project is under budget and behind schedule.
Why it's wrong here
CPI<1 means over budget, SPI>1 means ahead of schedule.
- ✓
The project is over budget and ahead of schedule.
Why this is correct
CPI=0.8 means over budget, SPI=1.2 means ahead of schedule.
- ✗
The project is on budget and on schedule.
Why it's wrong here
CPI and SPI should be 1.0.
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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. Refer to the exhibit. What is the cost performance index (CPI)?
easy- ✓ A.0.83
- B.0.91
- C.1.20
- D.1.10
Why A: CPI = EV/AC = 5000/6000 = 0.83. Options B, C, and D are incorrect calculations.
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.