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ISEB-PM1 · Question #254

Which is one of the determining factors used to calculate CPI?

The correct answer is A. EV. EV (Earned Value) is a direct input to the CPI formula: CPI = EV ÷ AC (Earned Value divided by Actual Cost). Without EV, you cannot compute CPI, making it a determining factor by definition. Why the distractors are wrong: B. SPI (Schedule Performance Index = EV ÷ PV) measures…

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Question

Which is one of the determining factors used to calculate CPI?

Options

  • AEV
  • BSPI
  • CPV
  • DETC

How the community answered

(31 responses)
  • A
    84% (26)
  • B
    3% (1)
  • C
    6% (2)
  • D
    6% (2)

Explanation

EV (Earned Value) is a direct input to the CPI formula: CPI = EV ÷ AC (Earned Value divided by Actual Cost). Without EV, you cannot compute CPI, making it a determining factor by definition.

Why the distractors are wrong:

  • B. SPI (Schedule Performance Index = EV ÷ PV) measures schedule efficiency, not cost - it's a separate performance index that doesn't feed into CPI.
  • C. PV (Planned Value) is used in SPI and variance calculations, but not in the CPI formula.
  • D. ETC (Estimate to Complete) is a forecasting metric for remaining work - it's derived from CPI, not used to calculate it.

Memory tip: Think of CPI as "Did I get my money's worth?" - you compare what you earned (EV) against what you actually spent (AC). The formula is simply EV over AC, so EV is always in the CPI calculation.

Topics

#CPI#earned value management#EV#cost performance index

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