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

CPI = EV/AC. When CPI = 0.88, for every dollar spent (AC), only $0.88 of work value has been earned (EV). The project is spending more than it is accomplishing, indicating an over-budget condition. CPI < 1.0 means over budget; CPI > 1.0 means under budget.

**Why not A:** Being 12% ahead of schedule is a schedule interpretation, not a cost interpretation. CPI measures cost performance (EV/AC), not schedule performance. Schedule efficiency is measured by SPI, which is a separate metric.

**Why not C:** While a CPI of 0.88 suggests the project may ultimately cost more, the CPI itself does not directly state the project will cost 12% more. CPI measures current cost efficiency; future cost forecasts require EAC calculations using CPI along with other inputs.

**Why not D:** CPI does not measure budget consumption as a percentage. It measures cost efficiency — the value earned per dollar spent. A CPI of 0.88 means 88 cents of value per dollar spent, not that 88% of the budget has been used.