You are managing a project with a total budget of $450,000. According to the schedule, your team should have completed 45% of the work by now. But at the latest status meeting, the team only reported that 40% of the work has actually been completed. The team has spent $165,000 so far on the project. How would you best describe this project?

You are managing a project with a total budget of $450,000. According to the schedule, your team should have completed 45% of the work by now. But at the latest status meeting, the team only reported that 40% of the work has actually been completed. The team has spent $165,000 so far on the project. How would you best describe this project?

You are managing a project with a total budget of $450,000. According to the schedule, your team should have completed 45% of the work by now. But at the latest status meeting, the team only reported that 40% of the work has actually been completed. The team has spent $165,000 so far on the project. How would you best describe this project?


A. The project is ahead of schedule and within its budget.

B. The project is behind schedule and within its budget.

C. The project is ahead of schedule and over its budget.

D. The project is behind schedule and over its budget.


Answer: Let's look at the schedule. Should be 45% complete, we are 40% complete. SPI = EV/PV = 40% / 45% = 0.89 < 1. We are behind schedule.

Now to budget. CPI = EV/AC = (40% x $450,000) / $165,000 = 1.09. We are within budget.


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