- A
The project is under budget but behind schedule
Why wrong: Under budget would require CPI > 1, but CPI is 0.71.
- B
The project is under budget and ahead of schedule
Why wrong: Both indices are below 1, so neither is favorable.
- C
The project is over budget but ahead of schedule
Why wrong: Ahead of schedule would require SPI > 1, but SPI is 0.83.
- D
The project is over budget and behind schedule
CPI < 1 and SPI < 1 indicate cost overrun and schedule delay.
Question 851 of 892
Cost & Schedule Performance Index: CPI and SPI Interpretation
This PMP practice question tests your understanding of process — managing technical aspects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your project is 40% complete, but the Earned Value (EV) is $50,000, Planned Value (PV) is $60,000, and Actual Cost (AC) is $70,000. The cost performance index (CPI) is 0.71, and the schedule performance index (SPI) is 0.83. What is the most likely impact on the project?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"most likely"Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
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
With a CPI of 0.71 (less than 1.0), the project is over budget because for every dollar spent, only $0.71 of earned value is received. With an SPI of 0.83 (less than 1.0), the project is behind schedule because only 83% of the planned work has been completed. Therefore, the project is both over budget and behind schedule, making option D correct.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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
Under budget would require CPI > 1, but CPI is 0.71.
- ✗
The project is under budget and ahead of schedule
Why it's wrong here
Both indices are below 1, so neither is favorable.
- ✗
The project is over budget but ahead of schedule
Why it's wrong here
Ahead of schedule would require SPI > 1, but SPI is 0.83.
- ✓
The project is over budget and behind schedule
Why this is correct
CPI < 1 and SPI < 1 indicate cost overrun and schedule delay.
Clue confirmation
The clue word "most likely" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may misinterpret the EV, PV, and AC values without calculating the indices, leading them to incorrectly think the project is under budget because EV is less than AC, but the CPI calculation confirms the over-budget status.
Detailed technical explanation
How to think about this question
The Cost Performance Index (CPI) is calculated as EV/AC = $50,000/$70,000 = 0.71, indicating cost inefficiency. The Schedule Performance Index (SPI) is EV/PV = $50,000/$60,000 = 0.83, indicating schedule delay. In EVM, both indices below 1.0 signal negative variances; the project is consuming more resources than planned and completing less work than scheduled, which typically requires corrective action such as crashing or fast-tracking.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Process — Managing Technical Aspects — study guide chapter
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FAQ
Questions learners often ask
What does this PMP question test?
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: The project is over budget and behind schedule — With a CPI of 0.71 (less than 1.0), the project is over budget because for every dollar spent, only $0.71 of earned value is received. With an SPI of 0.83 (less than 1.0), the project is behind schedule because only 83% of the planned work has been completed. Therefore, the project is both over budget and behind schedule, making option D correct.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
2 more ways this is tested on PMP
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. A project is 60% complete. The earned value (EV) is $120,000, the planned value (PV) is $150,000, and the actual cost (AC) is $130,000. What is the cost performance index (CPI) and what does it indicate?
medium- A.CPI = 0.80; the project is under budget
- B.CPI = 1.08; the project is under budget
- C.CPI = 0.92; the project is behind schedule
- ✓ D.CPI = 0.92; the project is over budget
Why D: The Cost Performance Index (CPI) is calculated as EV/AC = $120,000 / $130,000 = 0.92. A CPI less than 1.0 indicates that the project is over budget, meaning for every dollar spent, only $0.92 of value is earned. Option D correctly identifies both the CPI value and the over-budget status.
Variation 2. Your project's Earned Value (EV) is $45,000, Planned Value (PV) is $50,000, and Actual Cost (AC) is $55,000. The project is at the midpoint. What is the most accurate assessment of the project's status?
medium- A.The project is ahead of schedule and under budget
- B.The project is behind schedule and under budget
- C.The project is on schedule and over budget
- ✓ D.The project is behind schedule and over budget
Why D: With EV=$45,000, PV=$50,000, and AC=$55,000, the Schedule Performance Index (SPI = EV/PV) is 0.90, indicating the project is behind schedule. The Cost Performance Index (CPI = EV/AC) is approximately 0.818, showing the project is over budget. Since both SPI and CPI are less than 1.0, the correct assessment is behind schedule and over budget, which matches option D.
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Last reviewed: Jul 4, 2026
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