Final Answer:
On an activity analysis graph, if BCWP/BCWS > 1 and BCWP/ACWP <1 is Project is ahead of schedule and over budget.The correct option is B) Project is ahead of schedule and over budget.
Step-by-step explanation:
In Earned Value Management (EVM), the indices BCWP/BCWS and BCWP/ACWP are used to assess project performance.
BCWP (Budgeted Cost of Work Performed) represents the value of the work actually performed, BCWS (Budgeted Cost of Work Scheduled) represents the value of the work that was planned to be performed, and ACWP (Actual Cost of Work Performed) represents the actual cost incurred.
The ratio BCWP/BCWS is known as the Schedule Performance Index (SPI). If SPI > 1, it indicates that the project is ahead of schedule. In this case, BCWP/BCWS > 1, suggesting that the project is ahead of schedule.
The ratio BCWP/ACWP is known as the Cost Performance Index (CPI). If CPI < 1, it indicates that the project is over budget. Here, BCWP/ACWP < 1, indicating that the project is over budget.
Combining these results, a SPI > 1 (ahead of schedule) and CPI < 1 (over budget) lead to the conclusion that the project is ahead of schedule but over budget. Therefore, the correct answer is B) Project is ahead of schedule and over budget.