PMP Process — Managing Technical Aspects Practice Question
Your construction project is ahead of schedule but over budget. The earned value metrics are: EV = $500,000, PV = $450,000, AC = $550,000. What is the cost performance index (CPI) and schedule performance index (SPI)?
⚠ Common exam trap
The trap here is that candidates often invert the formulas (e.g., AC/EV for CPI or PV/EV for SPI) or confuse which metric corresponds to cost vs. schedule, leading to swapped or incorrect index values.
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
✓
CPI = 0.91, SPI = 1.11
The Cost Performance Index (CPI) is calculated as EV/AC = $500,000/$550,000 = 0.91, indicating cost overrun. The Schedule Performance Index (SPI) is EV/PV = $500,000/$450,000 = 1.11, indicating ahead of schedule. Option B correctly matches these values.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
CPI = 1.11, SPI = 0.91
Why it's wrong here
The project is described as "over budget," which means the Actual Cost (AC) exceeds the Earned Value (EV). Therefore, the Cost Performance Index (CPI = EV/AC) must be less than 1, indicating cost inefficiency. Conversely, being "ahead of schedule" implies the Earned Value (EV) is greater than the Planned Value (PV), so the Schedule Performance Index (SPI = EV/PV) must be greater than 1, signifying schedule efficiency. This option incorrectly reverses these fundamental interpretations.
- ✓
CPI = 0.91, SPI = 1.11
Why this is correct
This option correctly reflects the project status. A CPI of 0.91 (less than 1) accurately indicates that the project is over budget, as the actual cost incurred is greater than the value of work earned. Simultaneously, an SPI of 1.11 (greater than 1) correctly signifies that the project is ahead of schedule, meaning more work has been completed than planned for the current point in time. These values align perfectly with the given project description.
- ✗
CPI = 1.10, SPI = 0.91
Why it's wrong here
This option presents an incorrect interpretation of the project's performance. A CPI of 1.10 would suggest the project is under budget (cost efficient), which contradicts the "over budget" status. Similarly, an SPI of 0.91 would indicate the project is behind schedule, directly conflicting with the "ahead of schedule" condition. The values provided are fundamentally inconsistent with the project's reported cost and schedule performance.
- ✗
CPI = 0.91, SPI = 0.91
Why it's wrong here
While a CPI of 0.91 correctly indicates that the project is over budget, the SPI value of 0.91 is incorrect for a project that is "ahead of schedule." Being ahead of schedule means the Earned Value (EV) is greater than the Planned Value (PV), which would result in a Schedule Performance Index (SPI = EV/PV) greater than 1. An SPI of 0.91 would imply the project is behind schedule, directly contradicting the given information.
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