PMP Sample Question Answer?

[BradOSU99]

Hi Everyone. I have been studying for the PMP and came across a question that has me puzzled. I think it's a fairly simple question, but the answer the sample test is giving me does not make sense. Do you agree with the answer, or do you agree with me that the given answer is wrong? I would love some feedback on this. It's very frustrating.


Question: Rob, a project manager, is reviewing the cost performance of his project, which is 90% complete. The CPI turns out to be 0.75 and the earned value is $180,000. What is the project performance, as per Rob?

(A) Project cost performance is excellent since the project spend so far has been $135,000.

(B) Project cost performance is as per the plan. The project spend is equal to the earned value so far.

(C) Project cost performance is worse and is running out of control since the project spend so far has been $240,000.

(D) Project cost performance is worse and is running out of control since the project spend so far has been $266,666.


I believe the answer should be (C), but the test says the correct answer is (B). Am I wrong? If so, why? Thanks!

[Shashikant]

Project is overbudget.

CPI, in Project Management Terms, is Cost Performance Index. It's an indicator if a project is over budget, on budget, or under budget.

CPI > 1 : Project is under budget (this is good)
CPI = 1 : Project is on budget (also good)
CPI < 1 : Project is over budget, eg costing more than original planned

[BradOSU99]

Thank you for the response!

It sounds like you agree with me. So the practice test that I was using was just wrong.

I really appreciate your help. Thanks again! :-)