PMP Process — Managing Technical Aspects Practice Question
At the midpoint of your 18-month project, the earned value analysis shows: EV = $450,000, PV = $500,000, AC = $550,000. What should you be most concerned about?
⚠ Common exam trap
PMP often tests sign confusion — candidates misread negative SV as ahead of schedule or negative CV as under budget, so they pick the wrong combination of schedule and cost status.
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 both behind schedule and over budget.
With EV = $450,000, PV = $500,000, and AC = $550,000, the schedule variance (SV = EV - PV) is -$50,000, indicating the project is behind schedule, and the cost variance (CV = EV - AC) is -$100,000, indicating it is over budget. Therefore, the project is both behind schedule and over budget, which is the most concerning combination.
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 but over budget.
Why it's wrong here
The project's schedule performance is misrepresented. An 'ahead of schedule' status would be indicated by Earned Value (EV) being greater than Planned Value (PV), or a positive Schedule Variance (SV). However, the underlying data implies EV is less than PV, which unequivocally signifies the project is behind schedule, not ahead. While the 'over budget' part (EV < Actual Cost) might be true, the schedule assessment makes this option false.
- ✓
The project is both behind schedule and over budget.
Why this is correct
This option is correct as it accurately reflects both the schedule and cost performance based on standard Earned Value Management (EVM) metrics. A project is considered 'behind schedule' when the Earned Value (EV) is less than the Planned Value (PV), indicating less work has been completed than planned by this point. Concurrently, a project is 'over budget' when the Earned Value (EV) is less than the Actual Cost (AC), meaning more money has been spent than the value of the work accomplished.
- ✗
The project is on schedule and on budget.
Why it's wrong here
The project's performance deviates from both planned schedule and budget. For a project to be 'on schedule,' the Earned Value (EV) must equal the Planned Value (PV), resulting in a Schedule Variance (SV) of zero. Similarly, being 'on budget' requires the Earned Value (EV) to equal the Actual Cost (AC), leading to a Cost Variance (CV) of zero. The implied relationships (EV < PV and EV < AC) clearly demonstrate that neither of these ideal conditions has been met.
- ✗
The project is behind schedule but on budget.
Why it's wrong here
Due to an inaccurate assessment of the project's cost performance. While the project being 'behind schedule' (EV < PV) might be true, the assertion that it is 'on budget' is false. Being 'on budget' would require the Earned Value (EV) to be equal to the Actual Cost (AC). However, the underlying data indicates that Actual Cost (AC) is greater than Earned Value (EV), which signifies a cost overrun, meaning the project is actually over budget.
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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 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.