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Task 5: Plan and manage budget and resourcesearned value managementCPIcost performanceperformance measurement
PMP · Question 89 · 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): $720,000<br/>- Earned Value (EV): $600,000<br/>- Actual Cost (AC): $680,000<br/><br/>Calculate the Cost Performance Index (CPI). Round to two decimal places and 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): $720,000<br/>- Earned Value (EV): $600,000<br/>- Actual Cost (AC): $680,000<br/><br/>Calculate the Cost Performance Index (CPI). Round to two decimal places and enter numbers only.
How to approach this question
Calculate CPI using the formula: CPI = EV / AC. This indicates cost performance efficiency relative to actual spending.
Full Answer
0.88
Cost Performance Index (CPI) = EV / AC = 600,000 / 680,000 = 0.882. A CPI less than 1.0 indicates the project is over budget for the work completed.
Common mistakes
Using wrong formula (confusing with SPI), calculation errors, or incorrect rounding to two decimal places.
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