PMP Process — Managing Technical Aspects Practice Question
Your project is halfway through execution, and the earned value analysis shows CPI = 0.85 and SPI = 0.90. You have used 60% of the budget. What is the most likely interpretation of these metrics?
⚠ Common exam trap
The trap here is that candidates misinterpret '60% of the budget used' as progress, but EVM requires comparing actual cost (AC) to earned value (EV), not to planned value (PV), so the low CPI and SPI together confirm both over-budget and behind-schedule conditions.
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
✓
The project is over budget and behind schedule
CPI = 0.85 (less than 1) indicates that for every dollar spent, only $0.85 of earned value has been received, meaning the project is over budget. SPI = 0.90 (less than 1) indicates that the project is progressing at 90% of the planned rate, meaning it is behind schedule.
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 under budget and ahead of schedule
Why it's wrong here
This option suggests the project is performing exceptionally well, being both cost-efficient and ahead of its planned schedule. To be considered "under budget," the Cost Performance Index (CPI) must be greater than 1.0, indicating that the actual cost incurred is less than the earned value. Simultaneously, to be "ahead of schedule," the Schedule Performance Index (SPI) must also be greater than 1.0, meaning more work has been completed than planned by this point. This scenario contradicts the implied project status where performance indices are likely below 1.0.
- ✓
The project is over budget and behind schedule
Why this is correct
This is the correct assessment of the project's status. A project is considered "over budget" when its Cost Performance Index (CPI) is less than 1.0, signifying that the actual cost expended to achieve the earned value is greater than the earned value itself, indicating a cost overrun. Concurrently, a project is "behind schedule" when its Schedule Performance Index (SPI) is less than 1.0, meaning the earned value is less than the planned value for the current point in time, indicating that less work has been completed than scheduled, resulting in a schedule delay.
- ✗
The project is under budget but behind schedule
Why it's wrong here
This option describes a project that is managing its costs effectively but failing to meet its schedule commitments. For a project to be "under budget," its Cost Performance Index (CPI) must be greater than 1.0, reflecting that the project is spending less than planned for the work accomplished. However, to be "behind schedule," the Schedule Performance Index (SPI) must be less than 1.0, indicating that the project has completed less work than originally planned by this stage. This specific combination of performance, while possible, does not align with the scenario where both cost and schedule are underperforming.
- ✗
The project is over budget but ahead of schedule
Why it's wrong here
This option suggests a project that is exceeding its budget but is ahead of its planned timeline. To be "over budget," the Cost Performance Index (CPI) must be less than 1.0, indicating that the actual costs are exceeding the earned value for the work completed. Conversely, for the project to be "ahead of schedule," the Schedule Performance Index (SPI) must be greater than 1.0, meaning the project has completed more work than planned by this point. This combination of poor cost performance but strong schedule performance is not consistent with a scenario where both aspects are struggling.
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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.