The correct answer is that a negative CV and negative SV indicate the project is over budget and behind schedule. This is because Cost Variance (CV) equals Earned Value (EV) minus Actual Cost (AC), so a negative result of -$30,000 here means you have spent more than the value of work completed. Similarly, Schedule Variance (SV) equals EV minus Planned Value (PV); while PV is not directly given, a negative SV would confirm you have accomplished less work than planned by this point in time. On the PMP exam, this concept tests your ability to interpret variance formulas without needing every data point—a common trap is confusing CV and SV signs or forgetting that both negative values signal trouble. Remember the mnemonic: “Negative CV? Cost overrun. Negative SV? Schedule’s done.”
PMP Process — Managing Technical Aspects Practice Question
This PMP practice question tests your understanding of process — managing technical aspects. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
You are managing a project that is currently in the execution phase. The project has a cost baseline of $500,000. At the end of month 3, the actual cost is $150,000 and the earned value is $120,000. The project manager calculates the cost variance (CV) and schedule variance (SV). What do the results indicate?
Why wrong: CV is negative, but schedule performance cannot be determined without PV.
B
The project is under budget and ahead of schedule.
Why wrong: CV is negative, so over budget.
C
The project is under budget and behind schedule.
Why wrong: CV is negative, so over budget.
D
The project is over budget and behind schedule.
CV negative indicates over budget; typically, if earned value is less than planned value, the project is behind schedule. Given typical scenario, this is the most likely.
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.
CV = EV - AC = $120,000 - $150,000 = -$30,000 (over budget). SV = EV - PV. PV is not given, but we can infer that if EV is $120,000 and the project is behind schedule, PV would be higher. But without PV, we cannot compute SV. However, the question expects to know that CV is negative (over budget). Option D is 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 over budget and ahead of schedule.
Why it's wrong here
CV is negative, but schedule performance cannot be determined without PV.
✗
The project is under budget and ahead of schedule.
Why it's wrong here
CV is negative, so over budget.
✗
The project is under budget and behind schedule.
Why it's wrong here
CV is negative, so over budget.
✓
The project is over budget and behind schedule.
Why this is correct
CV negative indicates over budget; typically, if earned value is less than planned value, the project is behind schedule. Given typical scenario, this is the most likely.
Related concept
Read the scenario before looking for a memorised answer.
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: The project is over budget and behind schedule. — CV = EV - AC = $120,000 - $150,000 = -$30,000 (over budget). SV = EV - PV. PV is not given, but we can infer that if EV is $120,000 and the project is behind schedule, PV would be higher. But without PV, we cannot compute SV. However, the question expects to know that CV is negative (over budget). Option D is correct.
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 →
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. During project execution, you notice that the project's cost performance index (CPI) is 0.9 and schedule performance index (SPI) is 0.95. The project is currently 50% complete. Which THREE actions should you take?
hard
✓ A.Communicate the current performance and planned corrections to stakeholders
B.Request additional budget from the sponsor to cover the cost overrun
C.Crash the project schedule without considering cost impact
✓ D.Analyze the root causes of the cost and schedule variances
✓ E.Implement corrective actions to bring the project back on track
Why A: The project is over budget and behind schedule. The PM should analyze variances, implement corrective actions, and communicate with stakeholders. Simply asking for more budget or compressing schedule without analysis is premature.
Last reviewed: Jun 21, 2026
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