PMP Process — Managing Technical Aspects Practice Question

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 behind schedule

  Why this is correct

  When the Cost Performance Index (CPI) is less than 1, it indicates that the actual cost incurred for the work performed is greater than the earned value, signifying that the project is currently over budget. Concurrently, if the Schedule Performance Index (SPI) is less than 1, it means the earned value is less than the planned value, indicating that the project has completed less work than planned by this point, thus running behind schedule. Therefore, both conditions together accurately describe a project that is over budget and behind schedule.

• ✗

  The project is under budget and ahead of schedule

  Why it's wrong here

  This option is incorrect because both CPI and SPI being less than 1 directly contradict the claims of being under budget and ahead of schedule. A CPI value below 1 explicitly means the project is spending more than planned for the work accomplished, leading to an over-budget status. Similarly, an SPI value below 1 signifies that less work has been completed than scheduled, placing the project behind schedule, not ahead. Thus, the stated conditions are the opposite of what CPI < 1 and SPI < 1 imply.

• ✗

  The project is over budget but ahead of schedule

  Why it's wrong here

  While a CPI less than 1 correctly indicates that the project is over budget, the assertion that it is 'ahead of schedule' is fundamentally incorrect when the Schedule Performance Index (SPI) is also less than 1. An SPI value below 1 specifically means that the project has not achieved the amount of work planned by the current date, signifying a behind-schedule status. Therefore, despite being over budget, the project cannot be simultaneously ahead of schedule under these earned value conditions.

• ✗

  The project is under budget but behind schedule

  Why it's wrong here

  This option incorrectly states the budget status while accurately reflecting the schedule status. A Cost Performance Index (CPI) less than 1 unequivocally means that the project is spending more money than planned for the work completed, which translates to being over budget, not under budget. Although an SPI less than 1 correctly indicates the project is behind schedule, the misrepresentation of the budget status makes this entire statement false. The financial performance is clearly unfavorable based on the CPI.

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