PMP Process — Managing Technical Aspects Practice Question
Your project is 40% complete and the earned value metrics show: PV = $500,000, EV = $450,000, AC = $520,000. What is the most accurate interpretation of the project's performance?
⚠ Common exam trap
Many exam-takers confuse the relationship between EV and PV for schedule performance and EV and AC for cost performance, mistakenly thinking that if EV is less than PV the project is under budget, or that AC exceeding EV means the project is ahead of schedule.
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
✓
Project is behind schedule and over budget
The project is behind schedule because the Earned Value (EV) of $450,000 is less than the Planned Value (PV) of $500,000, resulting in a Schedule Performance Index (SPI) of 0.90. It is over budget because the Actual Cost (AC) of $520,000 exceeds the EV, yielding a Cost Performance Index (CPI) of 0.865. This combination of SPI < 1 and CPI < 1 indicates the project is both behind schedule and over budget.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Project is on schedule and over budget
Why it's wrong here
The statement claims the project is "on schedule," but the Schedule Performance Index (SPI) of 0.9 clearly indicates that the project is behind schedule because SPI is less than 1. While the Cost Performance Index (CPI) of 0.865 correctly identifies the project as "over budget" (since CPI < 1), the inaccuracy regarding schedule performance renders this entire option incorrect. A project must meet both conditions to be accurately described.
- ✗
Project is ahead of schedule and under budget
Why it's wrong here
This option is incorrect on both counts. The Schedule Performance Index (SPI) is 0.9, which is less than 1, signifying that the project is behind schedule, not ahead of schedule. Furthermore, the Cost Performance Index (CPI) is 0.865, also less than 1, which means the project is over budget, not under budget. Both performance indicators contradict the claims made in this option.
- ✓
Project is behind schedule and over budget
Why this is correct
This option accurately describes the project's status based on its Earned Value Management (EVM) indices. With a Schedule Performance Index (SPI) of 0.9, which is less than 1, the project is definitively behind its planned schedule. Concurrently, a Cost Performance Index (CPI) of 0.865, also less than 1, confirms that the project has spent more than budgeted for the work accomplished, indicating it is over budget.
- ✗
Project is behind schedule and under budget
Why it's wrong here
While the first part of the statement, "behind schedule," is correct due to an SPI of 0.9 (less than 1), the second part, "under budget," is incorrect. A Cost Performance Index (CPI) of 0.865, being less than 1, signifies that the project is actually over budget, not under budget. Therefore, because one of its components is false, this entire option cannot be selected as the correct description.
Go deeper
Related to this question
About these practice questions
This PMP question is part of Courseiva's 800-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam 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.