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Task 5: Plan and manage budget and resourcesearned-value-managementtcpi-calculationcost-performanceproject-forecasting
PMP · Question 91 · Task 5: Plan and manage budget and resources
A project has the following earned value data:<br/><br/>- Budget at Completion (BAC): $800,000<br/>- Earned Value (EV): $480,000<br/>- Actual Cost (AC): $520,000<br/><br/>Assuming current cost performance continues, what is the To Complete Performance Index (TCPI) based on BAC? (Round to two decimal places, enter numbers only)
A project has the following earned value data:<br/><br/>- Budget at Completion (BAC): $800,000<br/>- Earned Value (EV): $480,000<br/>- Actual Cost (AC): $520,000<br/><br/>Assuming current cost performance continues, what is the To Complete Performance Index (TCPI) based on BAC? (Round to two decimal places, enter numbers only)
How to approach this question
Calculate TCPI using the formula: TCPI = (BAC - EV) / (BAC - AC). TCPI = ($800,000 - $480,000) / ($800,000 - $520,000) = $320,000 / $280,000 = 1.143, which rounds to 1.14.
Full Answer
To Complete Performance Index (TCPI) = (BAC - EV) / (BAC - AC) = ($800,000 - $480,000) / ($800,000 - $520,000) = $320,000 / $280,000 = 1.143 ≈ 1.14. This means cost performance must improve to 1.14 to complete within budget.
Common mistakes
Using wrong formula, calculation errors, or confusing TCPI with other EVM indices.
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