Earned Value results show CPI

Question

Earned Value results show CPI < 1 and SPI < 1. Which conclusion is MOST accurate?

BlackTom AI · Accepted Answer

To tackle this question, I’ll evaluate what CPI and SPI indicate in Earned Value Management and then test each answer choice against those indicators. Option 1: 'Ahead of schedule but over budget' would require SPI > 1 (better schedule performance) and CPI < 1 (cost overrun). Since the question states both CPI < 1 and SPI < 1, this option is inconsistent with the given data. Option 2: 'Performance cannot be assessed' would imply insufficient or ambiguous data. However, CPI and SPI values provide concrete performance metrics about cost and schedule, so this statement is incorrect because we do have evaluative information. Option 3: 'Behind schedule and over budget' aligns with CPI < 1 and SPI < 1. CPI less than 1 means cost overruns relative to the planned cost; the project is spending more than planned for the work completed. SPI less than 1 means the rate of progress is lagging behind the planned progress, i.e., the project is behind schedule. Taken together, these two indicators describe the project as both behind schedule and over budget. Option 4: 'Over budget but efficient' would describe a situation where costs are high (CPI < 1) but schedule performance is good or favorable (SPI > 1 or around 1 indicating efficiency). Since SPI is given as < 1, this option mischaracterizes the schedule performance and is therefore incorrect. In summary, the combination CPI < 1 and SPI < 1 points to deteriorated performance in both cost and schedule. The only option that matches this dual shortfall is 'Behind schedule and over budget'.

BU.300.620.51.FA25 Managing Complex Projects – Final Exam (35Q)

Earned Value results show CPI < 1 and SPI < 1. Which conclusion is MOST accurate?

View Explanation

Log in for full answers

Similar Questions

Why can CPI alone give a misleading picture of project health?

Given CPI < 1 and SPI < 1, and schedule pressure is causing overtime, which EAC formula is MOST realistic?

At Month 4 of a project, PV = $1.2M, EV = $0.95M, and AC = $1.10M. Which interpretation is correct?

You are managing a project with a one-year duration and a budget at completion (BAC) of $ 100,000. After 6 months, the project is 40% complete and the actual cost (AC) is $40,000. Consider a linear project progress inn this case. Which one of the following statements is correct?

Which of the following are true about Earned Value Management (EVM)? (Select all that apply)

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler