PGMP · Question #177
Which of the following shows the ratio between a task's budgeted and actual costs?
The correct answer is D. Cost Performance Index (CPI). The Cost Performance Index (CPI) is the earned value metric that shows the ratio of budgeted cost (EV) to actual cost (AC) for work performed.
Question
Which of the following shows the ratio between a task's budgeted and actual costs?
Options
- ATo-Complete Performance Index (TCPI)
- BSchedule Variance (SV)
- CSchedule Performance Index (SPI)
- DCost Performance Index (CPI)
How the community answered
(47 responses)- A4% (2)
- B2% (1)
- C2% (1)
- D91% (43)
Why each option
The Cost Performance Index (CPI) is the earned value metric that shows the ratio of budgeted cost (EV) to actual cost (AC) for work performed.
TCPI (To-Complete Performance Index) shows the cost efficiency required on all remaining work to finish within a target budget, not a ratio of past budgeted to actual costs.
Schedule Variance (SV = EV - PV) measures schedule performance as a monetary difference, not a ratio of budgeted to actual costs.
SPI (Schedule Performance Index = EV / PV) measures the ratio of work accomplished to work planned, reflecting schedule efficiency rather than cost efficiency.
CPI = EV / AC, where EV (Earned Value) is the budgeted cost of work actually completed and AC is the actual cost incurred. A CPI of 1.0 means on budget, above 1.0 means under budget, and below 1.0 means over budget - making it the direct measure of budget efficiency on work performed.
Concept tested: Cost Performance Index (CPI) formula and interpretation
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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