CAPM Practice: Determine how to document project controls of predictive, plan-based projects

SPI = EV/PV = 504,000/600,000 = 0.84 (behind schedule). CPI = EV/AC = 504,000/560,000 = 0.90 (over budget). The project is simultaneously behind schedule AND over budget — a double-negative performance position. EAC = BAC/CPI = 1,200,000/0.90 = $1,333,333 (projected overrun of $133,333). This situation requires immediate attention to both schedule recovery and cost control.

**Why not A:** The project has not spent less than planned. AC ($560,000) exceeds EV ($504,000), meaning the project has spent more than the value of work completed. The statement confuses AC < PV with good performance, but PV measures planned work value, not spending efficiency.

**Why not C:** With SPI of 0.84 and CPI of 0.90, the project is performing at only 84% schedule efficiency and 90% cost efficiency. These are significant negative variances at the halfway point of the project, indicating performance is outside acceptable tolerance and requires corrective action.

**Why not D:** The fact that AC ($560,000) is less than PV ($600,000) does not mean the project is ahead of schedule. Schedule performance is measured by comparing EV to PV (SPI = EV/PV = 0.84), which shows the project is behind schedule. The AC-to-PV comparison addresses spending rate, not schedule progress.