PMP Process — Managing Technical Aspects Practice Question
Your project is halfway through its schedule, and you are performing a variance analysis. You find that the cost performance index (CPI) is 0.85 and the schedule performance index (SPI) is 1.1. What is the MOST likely cause of this situation?
⚠ Common exam trap
The trap here is that candidates see SPI > 1.0 and CPI < 1.0 and incorrectly assume a data error, rather than recognizing the realistic project management trade-off of overtime causing cost overruns while accelerating 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
✓
The team is working overtime to meet deadlines, resulting in higher labor costs
A CPI of 0.85 indicates that for every dollar spent, only $0.85 of earned value is being delivered, meaning the project is over budget. An SPI of 1.1 indicates the project is ahead of schedule (10% more work completed than planned). The most likely cause is that the team is working overtime to achieve the schedule gains, which increases labor costs (e.g., overtime pay rates) without a proportional increase in output, driving the cost overrun.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Scope has been reduced without corresponding cost reduction
Why it's wrong here
Reduced scope lowers earned value, which would depress SPI below 1.0, yet SPI here is 1.1, so this contradicts the data. It tempts because descoping genuinely cuts costs, and in a scenario showing CPI below 1.0 with SPI below 1.0 it would fit.
- ✗
There is a calculation error in the earned value data
Why it's wrong here
A calculation error is an arbitrary data-integrity fault, not a cause the indices themselves indicate; CPI 0.85 with SPI 1.1 is a coherent, common pattern. It tempts as a catch-all when figures look contradictory, and would be right if the underlying PV, EV or AC inputs were misrecorded.
- ✓
The team is working overtime to meet deadlines, resulting in higher labor costs
Why this is correct
CPI below one with SPI above one indicates overspending while ahead of or on schedule. Overtime raises labour costs, depressing CPI, while accelerating delivery lifts SPI. This pairing precisely matches the stem's 0.85 CPI and 1.1 SPI values.
- ✗
The project is under budget and ahead of schedule
Why it's wrong here
CPI 0.85 means cost efficiency is below 1.0, so the project is over budget, not under; SPI 1.1 does show ahead of schedule. It tempts because SPI above 1.0 genuinely signals schedule gain, and would be correct if CPI also exceeded 1.0.
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