What is the cost performance index for a project that has a TBC = $50,000, a CEV = $25,000, a CAC = $20,000, and CBC = $22,000.
A) CPI = 1.25
B) CPI = 0.8
C) CPI = 1.1
D) CPI = 0.91

Question

Quizplus · Accepted Answer

The Cost Performance Index (CPI) is calculated as the ratio of Earned Value (EV) to Actual Cost (AC). In this case, the CEV (Cost Earned Value) represents the EV, and the CAC (Cost Actual Cost) represents the AC. Therefore, CPI = CEV / CAC = $25,000 / $20,000 = 1.25.

What Is the Cost Performance Index for a Project That