Project Management Professional (PMP) — Question 1413

A project manager has received an updated earned value analysis report. The following are the key findings from the report:
* Budget at completion = US$1 million
* Earned value = US$0,7 million
* Actual cost = US$0,75 million
* Cost performance index = 0,933
Based on this information, what should the project manager conclude about project performance?

Answer options

• A. The project will be completed exactly as planned
• B. The project will be easier to complete than planned
• C. The project will be difficult to complete as planned
• D. The project will not be completed as planned

Correct answer: C

Explanation

The cost performance index (CPI) of 0.933 indicates that the project is over budget, meaning it is not performing as planned. A CPI below 1 signifies that the project will be difficult to complete within the original budget, which aligns with option C. Options A and B are incorrect because they imply favorable outcomes, while option D suggests total failure, which isn't necessarily supported by the data.