PMP Process — Managing Technical Aspects Practice Question
Your construction project is halfway through the schedule. Earned value analysis shows EV = $500,000, PV = $600,000, AC = $550,000. The original budget (BAC) is $1,200,000. What is the most appropriate action considering the project's performance?
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
✓
Analyze the root causes of the schedule and cost variances before taking corrective action
Earned value analysis shows SPI = EV/PV = 500,000/600,000 = 0.83, indicating the project is behind schedule. CPI = EV/AC = 500,000/550,000 = 0.91, indicating the project is over budget. Per PMI best practices and the PMBOK Guide, the first step when variances are identified is to analyze the root causes before taking corrective action. Option A reflects this approach. Option B is incorrect because the project is over budget, not under budget. Option C is premature; crashing may be considered after analysis. Option D is incorrect because it assumes a delay without analysis and requests additional budget without justification.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Analyze the root causes of the schedule and cost variances before taking corrective action
Why this is correct
In project management, particularly within the Monitor and Control Project Work process group, identifying and analyzing the root causes of significant schedule and cost variances is a critical first step. Before implementing any corrective or preventive actions, understanding *why* the project is performing differently than planned (e.g., scope creep, inaccurate estimates, resource unavailability) ensures that the chosen response addresses the actual problem, preventing recurrence and optimizing resource allocation. This systematic approach aligns with PMI's emphasis on data-driven decision-making.
- ✗
Celebrate that the project is under budget and slightly behind schedule
Why it's wrong here
Celebrating project performance when both the Cost Performance Index (CPI) and Schedule Performance Index (SPI) are below 1.0 is a significant misinterpretation of earned value management metrics. A CPI below 1.0 indicates that the project is over budget for the work completed, while an SPI below 1.0 signifies that less work has been accomplished than planned by this point. Therefore, the project is actually performing unfavorably on both cost and schedule, making celebration inappropriate and potentially misleading.
- ✗
Crash the critical path by adding resources to bring the schedule back on track
Why it's wrong here
Crashing the critical path, which involves adding resources or working overtime to shorten the schedule, is a valid schedule compression technique. However, implementing such a drastic and often costly corrective action without first analyzing the root causes of the schedule variance is premature and ill-advised. Without understanding *why* the project is behind schedule, crashing might address a symptom rather than the underlying issue, potentially leading to wasted resources, increased risk, or even further delays if the root cause persists.
- ✗
Inform the sponsor that the project will be delayed and request additional budget
Why it's wrong here
Informing the sponsor of delays and requesting additional budget without a thorough analysis of the variances and their root causes is a premature and unprofessional response. Such an action suggests a lack of understanding of the project's current state and potential solutions. Project managers are expected to investigate performance deviations, explore internal mitigation strategies, and present data-backed recommendations, rather than immediately escalating problems without prior due diligence.
Go deeper
Related to this question
About these practice questions
Courseiva writes every PMP question from scratch — 800 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.