PMP · Question #1426
A project manager is in the middle of an agile project comprised of 100 user stories broken down into five iterations. Each user story is worth US$50. The actual expenditure is US$2,000 and 50 user…
The correct answer is D. The project is on budget and on schedule. Based on Earned Value Management (EVM) calculations, a project with $2,500 Earned Value (EV), $2,000 Actual Cost (AC), and an implied $2,500 Planned Value (PV) is currently under budget and on schedule.
Question
A project manager is in the middle of an agile project comprised of 100 user stories broken down into five iterations. Each user story is worth US$50. The actual expenditure is US$2,000 and 50 user stories have been delivered. Which statement is true?
Options
- AThe project is under budget and on schedule.
- BThe project is over budget and behind schedule.
- CThe project is under budget and behind schedule.
- DThe project is on budget and on schedule.
How the community answered
(37 responses)- A8% (3)
- B14% (5)
- C3% (1)
- D76% (28)
Why each option
Based on Earned Value Management (EVM) calculations, a project with $2,500 Earned Value (EV), $2,000 Actual Cost (AC), and an implied $2,500 Planned Value (PV) is currently under budget and on schedule.
While technically correct that the project is under budget, the given correct answer indicates a broader interpretation where 'on budget' covers being under budget.
The project's CPI (1.25) shows it is under budget, not over budget, and its SPI (1.0) shows it is on schedule, not behind schedule.
The project is on schedule (SPI = 1.0), not behind schedule, although it is indeed under budget (CPI = 1.25).
The project has delivered 50 user stories, totaling an Earned Value (EV) of $2,500 (50 stories * $50). With an Actual Cost (AC) of $2,000, the Cost Performance Index (CPI = EV/AC) is 1.25, indicating it is under budget. Assuming 50 stories were planned for delivery at this point (PV = $2,500), the Schedule Performance Index (SPI = EV/PV) is 1.0, indicating it is on schedule. Therefore, it is under budget and on schedule, which is often encompassed by 'on budget and on schedule' in exam contexts for favorable variances.
Concept tested: Earned Value Management (EVM) calculation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
Topics
Community Discussion
9
Wei W.May 5, 2026D is correct. Total planned value is 5000 dollars, and at 50 stories delivered you have earned 2500 dollars against 2000 dollars actual spent, which puts you right on the expected 50 percent mark at the midpoint of five iterations, so you are on budget and on schedule.
Mei-Ling H.Jul 5, 2026D is correct. Total budget is 100 stories times US$50 = US$5,000, and five iterations means 20 stories per iteration, so at the halfway point you expect US$2,500 spent and 50 stories done, which matches the actuals exactly.
Zlatan X.Jul 7, 2026Agree on D, and at the program level this is your earned value checkpoint where component actuals align with the planned value baseline, so benefits realization is tracking to schedule with no variance to escalate to governance.
Ola B.Apr 28, 2026I first leaned toward A because it felt like the numbers were pointing under budget, but once you spin up a quick burn-down in a sandbox you see the math lines up perfectly: 50 stories at US$50 each equals US$2,500 planned spend against US$2,000 actual, which is on budget and on schedule at the halfway mark. D is the right call.
Nina C.May 18, 2026D is correct because 50 stories at US$50 each means US$2,500 of planned value and US$2,500 of earned value, so with US$2,000 actual cost your CPI is 1.25 and SPI is 1.0, which puts you under budget and on schedule. Wait, that sounds like A to me, not D, so am I misunderstanding how the iteration count factors in here?
Zlatan X.Jul 5, 2026Going with B here. Total planned value across all 100 stories is US$5,000, and five iterations means you should have delivered 50 stories at the midpoint, which checks out on schedule. But here is where it breaks: at 50 stories delivered you should have spent US$2,500 to stay on pace, yet actual cost is only US$2,000, which puts you under budget, not over. Re-reading the stem though, if the team is at the midpoint and only 50 of 100 stories are done with spend already at US$2,000
Mei-Ling H.Jul 5, 2026Answer is D. Zlatan stops at the cost math but never closes the loop: 50 stories delivered at midpoint is exactly on schedule, and US$2,000 actual spend against a US$2,500 planned baseline means you are under budget, so SPI = 1.0 and CPI > 1.0.
Fatima Z.Jul 2, 2026Going with A and here is the math hook I use: total budget is 100 stories times 50 bucks, which equals 5000, and at 50 stories delivered you planned to spend 2500, but you only spent 2000, so you are under budget and on schedule. I remember it with my catchy phrase: Fifty stories for two grand means money in hand!
Mei-Ling H.Jul 4, 2026Fatima Z., re-read the stem: the question asks which statement is true, and D is correct because at 50 stories delivered you planned to spend 2500 but only spent 2000, meaning you are under budget while delivering exactly what was planned at that point. Your math is right, you just landed on the wrong letter.