PMP Process — Managing Technical Aspects Practice Question
A project is halfway through its schedule. The earned value (EV) is $50,000, planned value (PV) is $60,000, and actual cost (AC) is $70,000. The project manager calculates the cost performance index (CPI) and schedule performance index (SPI). Based on these metrics, what is the most likely situation?
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 = EV/AC = 50,000/70,000 = 0.71 (over budget), SPI = EV/PV = 50,000/60,000 = 0.83 (behind schedule). 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 under budget but behind schedule.
Why it's wrong here
This statement is incorrect because 'under budget' implies a Cost Performance Index (CPI) greater than 1 (CPI > 1), indicating that the earned value exceeds the actual cost incurred. However, if the project is truly over budget, its CPI would be less than 1 (CPI < 1), meaning more money has been spent than the value earned for the work completed. While the 'behind schedule' aspect might be accurate, the budget status contradicts the underlying project performance.
- ✗
The project is under budget and ahead of schedule.
Why it's wrong here
This option is incorrect as both performance indicators contradict the project's actual status. 'Under budget' would require a Cost Performance Index (CPI) greater than 1, signifying efficient cost management where earned value surpasses actual cost. Similarly, 'ahead of schedule' necessitates a Schedule Performance Index (SPI) greater than 1, indicating more work has been completed than planned. If the project is over budget and behind schedule, both CPI and SPI would be less than 1, directly opposing this statement.
- ✗
The project is over budget but ahead of schedule.
Why it's wrong here
While 'over budget' accurately reflects a Cost Performance Index (CPI) less than 1, signifying that the actual cost incurred exceeds the earned value for the work accomplished, the statement's second part is incorrect. 'Ahead of schedule' implies a Schedule Performance Index (SPI) greater than 1, meaning the project has completed more work than planned by this point in time. If the project is actually behind schedule, its SPI would be less than 1, contradicting the claim of being ahead of schedule.
- ✓
The project is over budget and behind schedule.
Why this is correct
This statement accurately describes the project's performance based on Earned Value Management metrics. 'Over budget' is indicated by a Cost Performance Index (CPI) less than 1 (CPI < 1), meaning the actual cost incurred for the work performed is greater than the value earned. Concurrently, 'behind schedule' is reflected by a Schedule Performance Index (SPI) less than 1 (SPI < 1), which signifies that the earned value is less than the planned value for the current point in time, indicating a delay.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP 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 PMP exam.