The correct next step is to analyze the variances to determine root causes and implement corrective actions. This is because the earned value (EV) of $200,000 is less than the planned value (PV) of $250,000, giving a schedule performance index (SPI) below 1.0, and the actual cost (AC) of $230,000 exceeds EV, yielding a cost performance index (CPI) also below 1.0. Together, these metrics confirm the project is behind schedule and over budget, so the immediate priority is to investigate why these variances occurred before taking any corrective action. On the PMP exam, this scenario tests your understanding of the Earned Value Management (EVM) process flow, specifically that analysis always precedes action—a common trap is jumping to re-baselining or communicating results without first diagnosing root causes. Remember the memory tip: “Analyze first, act second—don’t let the variance distract you from the cause.”
PMP Process — Managing Technical Aspects Practice Question
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.
A project using a predictive approach is 40% complete. The earned value (EV) is $200,000, the planned value (PV) is $250,000, and the actual cost (AC) is $230,000. What should the project manager do NEXT?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Analyze the variances to determine root causes and implement corrective actions
The project is behind schedule (SPI < 1) and over budget (CPI < 1). Option B is correct: analyze root causes and take corrective action. Option A is wrong because EAC may change; Option C is wrong because you communicate after analysis; Option D is a possible technique but not the next step.
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.
✗
Report the variances to stakeholders immediately and ask for more budget
Why it's wrong here
The PM should analyze and propose options before reporting.
✓
Analyze the variances to determine root causes and implement corrective actions
Why this is correct
The PM should first understand why the variances occurred and then take action.
Related concept
Read the scenario before looking for a memorised answer.
✗
Calculate the estimate at completion (EAC) and rebaseline the project
Why it's wrong here
Rebaselining should be done only after exploring corrective actions and with approval.
✗
Apply schedule compression techniques such as crashing
Why it's wrong here
Schedule compression is a technique to address schedule variance, but the PM should analyze first.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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: Analyze the variances to determine root causes and implement corrective actions — The project is behind schedule (SPI < 1) and over budget (CPI < 1). Option B is correct: analyze root causes and take corrective action. Option A is wrong because EAC may change; Option C is wrong because you communicate after analysis; Option D is a possible technique but not the next step.
What should I do if I get this PMP question wrong?
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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 →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.