CompTIA Project+ (PK0-004) — Question 406

Which of the following metrics demonstrates to a project manager if a project is overspending or underspending?

Answer options

• A. EAC
• B. BAC
• C. CPI
• D. ETC

Correct answer: C

Explanation

The Cost Performance Index (CPI) is a key indicator that helps project managers assess the cost efficiency of a project. A CPI value less than 1 signifies overspending, while a value greater than 1 indicates underspending. The other options, EAC, BAC, and ETC, are related metrics but do not directly measure whether a project is overspending or underspending.