CompTIA Project+ (PK0-004) — Question 243

A project manager is creating the monthly report for top management. The project manager has collected the information below:

AC = 100 -

PV = 80 -

EV = 120 -
Based on this information, the CPI reflects which of the following about the project?

Answer options

• A. It is under budget.
• B. It is over budget.
• C. It is ahead of schedule.
• D. It is behind schedule.

Correct answer: A

Explanation

The Cost Performance Index (CPI) is calculated as EV/AC. In this case, CPI = 120/100 = 1.2, which indicates that the project is under budget since the CPI is greater than 1. The other options are incorrect because they suggest budget overruns or schedule delays, which are not supported by the calculated CPI.