exam questions

Exam PMP All Questions

View all questions & answers for the PMP exam

Exam PMP topic 1 question 152 discussion

Actual exam question from PMI's PMP
Question #: 152
Topic #: 1
[All PMP Questions]

A project manager is performing earned value management (EVM) for a cross-country pipeline project. The project manager has determined the ratio of earned value (EV) to actual cost (AC) for the project and has found the calculated result to be 0.9024.
What does this value mean for the project?

  • A. The project is earning less value than was planned
  • B. The project has started exceeding the planned cost
  • C. The project has earned more value than planned
  • D. The project is close to exceeding the planned cost
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
pmp_237student
Highly Voted 2 years, 3 months ago
The figure is less than 1 which shows that AC>EV this means the project is earning less value than expected, A should be the right choice here.
upvoted 20 times
PrimacomSHU
1 year, 5 months ago
Value is for SPI, rather than CPI
upvoted 1 times
...
...
chxzqw
Highly Voted 2 years, 3 months ago
are both A and B same thing ?
upvoted 6 times
...
kavikris
Most Recent 4 months ago
Selected Answer: A
Its slightly confusing, but the answer should be A, as it is clear the expected planned value is less than actual cost. Option B says the cost 'started' to exceed the value how can anyone confirm whether cost started exceeding value ? assume if the EV/AC was 0.7 last month and now it is 0.9 then we cant say the cost started exceeding the value right? hence answer has to be A
upvoted 1 times
...
LotToLearn
6 months ago
A is right answer A figure is less then 1 it means expenditure is higher then earned value
upvoted 1 times
...
diegovcz
7 months, 3 weeks ago
• CPI equal to 1 COST SPENT AS PLANNED • CPI less than 1 LESS WORK DONE VS THE SPENT (LESS WORK AND MORE MONEY SPENT) A CPI greater than 1 MORE WORK DONE VS THE COST SPENT
upvoted 1 times
...
diegovcz
7 months, 3 weeks ago
• CPI equal to 1 COST EXPENT AS PLANNED • CPI less than 1 LESS WORK DONE VS THE EXPENT (LESS WORK AND MORE MONEY EXPENT) A CPI greater than 1 MORE WORK DONE VS THE COST EXPENT
upvoted 1 times
...
Paramak
8 months, 2 weeks ago
CHATGPT says Answer is B CPI is a measure of the cost efficiency of a project. It is calculated using the formula: CPI = EV AC CPI= AC EV ​ In this case, the CPI is 0.9024. A CPI of less than 1 indicates that the project is over budget, meaning it is costing more to complete the work than was planned. Therefore, the correct interpretation of a CPI of 0.9024 is that the project has started exceeding the planned cost. So, the correct answer is: B. The project has started exceeding the planned cost
upvoted 2 times
...
tonybuivannghia
8 months, 2 weeks ago
Selected Answer: A
CPI is less than 1, so A is correct
upvoted 1 times
...
nqbaotd
10 months ago
CPI= EV/AC < 1, so A is correct
upvoted 1 times
...
akashushi007
10 months, 2 weeks ago
Selected Answer: B
B. The project has started exceeding the planned cost This is because the project is earning less value than what was planned for the actual cost incurred
upvoted 3 times
...
jiljap
11 months, 1 week ago
If the CV is positive (CV>0), this means that the acquired value is greater than the actual cost (EV-AC>0 or EV>AC) and therefore the project has earned more value than planned, C is correc
upvoted 1 times
...
Martinussantika
11 months, 3 weeks ago
Selected Answer: A
The wording "has started" on B will confusing (since when). But the fact according to PMI also saying earned value must be bigger than actual cost. so answer A is more clear
upvoted 2 times
Martinussantika
2 months, 1 week ago
Correction, the correct answer should be B
upvoted 1 times
...
...
Awaisalam
1 year ago
A. The project is earning less value than was planned
upvoted 1 times
...
segatarasov
1 year, 1 month ago
C cannot be a correct answer, A is correct A ratio of less than 1 indicates that the project is over budget, while a ratio greater than 1 suggests that the project is under budget. In this case, a ratio of 0.9024 indicates that the project is slightly over budget.
upvoted 1 times
...
odylec
1 year, 2 months ago
Selected Answer: B
B is the Answer. Here we talk about CPI=EV/AC so its COST.
upvoted 3 times
odylec
1 year, 2 months ago
CPI is for Cost and SPI fo Value
upvoted 2 times
...
...
leo9944
1 year, 2 months ago
the answer is A because we are talking value here by presenting CPI
upvoted 1 times
...
atoms101
1 year, 3 months ago
Selected Answer: D
Since A & B are same, we need to choose option which is balanced which is true in general.
upvoted 1 times
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
Loading ...
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago