Project Management Professional (PMP) Exam Practice – Question1421

As of the fourth month on the Acme project, cumulative planned expenditures were $100,000.

Actual expenditures totaled $120,000. How is the Acme project doing?


A. It is ahead of schedule.
B. It is in trouble because of a cost overrun.
C. It will finish within the original budget.
D. The information is insufficient to make an assessment.

Correct Answer: D

Explanation:

Explanation:
The information provided tells us that, as of the fourth month, more money has been spent than was planned. However, we need to know how much work has been completed to determine how the project is performing. In earned value terms, we are missing the
EV.