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PMP · Question #1072

A project manager receives information in preparation for reporting the project's monthly performance to the project steering committee: Actual progress = 2 units Planned progress = 3 units Actual cos

The correct answer is C. The project is currently behind schedule with a corresponding lower cost, and every effort is being. The project manager must report on the project's performance, which is currently behind schedule but under budget.

Submitted by yaw92· Apr 18, 2026Process

Question

A project manager receives information in preparation for reporting the project's monthly performance to the project steering committee: Actual progress = 2 units Planned progress = 3 units Actual cost (AC) = 2 units Budgeted cost = 3 units What statement should the project manager make to the project steering committee?

Options

  • AThe project is currently behind schedule but at a lower cost, and an application for a time and
  • BThe project is currently behind schedule with a corresponding cost savings, and no further actions
  • CThe project is currently behind schedule with a corresponding lower cost, and every effort is being
  • DThe project is currently behind schedule but is under the planned expenditure, and the project

How the community answered

(55 responses)
  • A
    7% (4)
  • B
    15% (8)
  • C
    75% (41)
  • D
    4% (2)

Why each option

The project manager must report on the project's performance, which is currently behind schedule but under budget.

AThe project is currently behind schedule but at a lower cost, and an application for a time and

While behind schedule and lower cost are correct, immediately applying for a time extension is not the first or only action; addressing the underlying cause of the delay and making efforts to catch up is typically prioritized.

BThe project is currently behind schedule with a corresponding cost savings, and no further actions

Stating 'no further actions' is inappropriate, as being behind schedule requires attention and corrective actions to get the project back on track.

CThe project is currently behind schedule with a corresponding lower cost, and every effort is beingCorrect

Based on the data, actual progress (2 units) is less than planned (3 units), indicating the project is behind schedule. Actual cost (2 units) is less than the budgeted cost (3 units), meaning the project is under budget or at a lower cost, and active efforts should be communicated to address the schedule delay.

DThe project is currently behind schedule but is under the planned expenditure, and the project

The choice is incomplete, but the first part accurately states 'behind schedule but is under the planned expenditure.' However, the latter part is missing, making it an inferior answer to C which includes the necessary follow-up action.

Concept tested: Earned Value Management (EVM) interpretation, status reporting

Topics

#Performance Reporting#Schedule Performance#Cost Performance#Stakeholder Communication

Community Discussion

8
Ingrid P.Ingrid P.Jun 26, 2026

C is correct. SV = EV - PV = 2 - 3 = -1 so you are behind schedule, and CV = EV - AC = 2 - 2 = 0 which means you are running exactly on budget, not under it, so the key wording is "lower cost" relative to the planned expenditure rate. Make a card drilling the EV versus AC distinction because options A and D both trap you into claiming cost savings when CV is actually zero.

22
Anjali D.Anjali D.May 20, 2026

Group landed on C, behind schedule but under budget. Anyone know why action wording matters here?

0
Olusegun A.Olusegun A.May 23, 2026

C is correct because the action verb needs to reflect monitoring and controlling, not corrective action, since you are still diagnosing the schedule variance before deciding what to fix.

0
Ola B.Ola B.May 30, 2026

C is right but the wording is clumsy. I almost went with B because the cost savings part is phrased cleaner, but B says no further actions which is a trap. If you want to see this click, spin up a quick spreadsheet with SV = EV - AC and CV = EV - AC and watch how the numbers land, you learn this stuff by building it not memorizing formulas.

0
Zlatan X.Zlatan X.May 30, 2026

Agreed on B being the trap, but heads up your formulas are off: SV is EV minus PV and CV is EV minus AC, so double-check that spreadsheet before you build muscle memory on bad math.

0
Zlatan X.Zlatan X.Jun 10, 2026

Going with D. At the program level, what matters to a steering committee is clear benefits status without conflating schedule variance with schedule changes, and D correctly frames the under-expenditure as a symptom of the schedule slip rather than a cost efficiency to celebrate.

0
Ingrid P.Ingrid P.Jun 12, 2026

C is correct here. The steering committee at the program level needs schedule variance reported as a distinct metric, and C properly separates schedule slippage from cost performance rather than linking them as cause and symptom the way D does. Worth a card on the distinction between schedule variance and cost variance reporting at the program governance level, since that conflation is a common trap.

0
Olusegun A.Olusegun A.May 25, 2026

C is correct. SV is negative, CV is positive - steer clear of A's CR trap.

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