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Task 5: Plan and manage budget and resourcesearned value managementCPI calculationcost performanceproject metrics
PMP · Question 88 · Task 5: Plan and manage budget and resources
A project has the following earned value metrics at the end of Month 10:<br/>- Budget at Completion (BAC): $1,200,000<br/>- Planned Value (PV): $800,000<br/>- Earned Value (EV): $700,000<br/>- Actual Cost (AC): $750,000<br/><br/>What is the Cost Performance Index (CPI)? (Round to two decimal places, enter numbers only)
A project has the following earned value metrics at the end of Month 10:<br/>- Budget at Completion (BAC): $1,200,000<br/>- Planned Value (PV): $800,000<br/>- Earned Value (EV): $700,000<br/>- Actual Cost (AC): $750,000<br/><br/>What is the Cost Performance Index (CPI)? (Round to two decimal places, enter numbers only)
How to approach this question
Calculate CPI using the formula: CPI = EV / AC. Round to two decimal places and enter numbers only.
Full Answer
CPI = EV / AC = 700,000 / 750,000 = 0.93. A CPI less than 1.0 indicates the project is over budget.
Common mistakes
Students often confuse CPI with SPI (EV/PV) or calculate incorrectly by using PV instead of AC in the denominator.
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